Amcor spends USD 435 mio in South American
The worlds largest packaging producers has expanded its footstep in South America by the acquisition of a major local player, Alusa. The purchase price of USD 435 million represents 8.5 times Profit Before Interest, Tax, Depreciation and Amortization (PBITDA). Alusa – which includes Alusa (Chile), Peruplast (Peru), Aluflex (Argentina) and Flexa (Colombia) – is owned by Techpack S.A. and Nexus Private Equity.
The business has four plants and a broad range of capabilities including film extrusion, flexographic and gravure printing and lamination. It is the largest flexible packaging manufacturer and supplier in Chile and Peru, and a leading participant in Colombia and Argentina, with one plant in each of these four countries.
Alusa has strong, long standing relationships with large multinational and regional customers and generates sales of approximately USD 375 million from the supply of flexible packaging for food, personal care and pet food applications.
Inclusive of synergy benefits of approximately USD 25 million and growth in the underlying markets, PBIT is expected to be approximately USD 65 million at the end of year three. The return on cash invested is expected to have reached approximately 15% at that time, taking into account costs to be incurred to realise synergies and working capital benefits. Given the unique and scalable position this provides in the South American region, further growth opportunities underpinned by a strong customer value proposition provide a pathway for returns to reach 20% by the end of year five.