Amcor bid packs eco-punch for market

AUSTRALIAN packaging manufacturer Amcor has acquired major US competitor Bemis in a deal that creates a $ US17 billion company with a global footprint.

Under the deal, the new, merged Amcor will have a primary listing on the New York Stock Exchange, with a secondary listing in Australia. Amcor manufactures flexible and rigid packaging for food, beverages, healthcare, personal care and other industries.

It employs about 35,000 workers across 195 plants in 43 countries worldwide. The Wisconsin- based Bemis employs about 16,000 people and runs 56 plants globally, and is considered a global leader in flexible packaging manufacturing.

The acquisition means Amcor will have a stronger foothold in the United States, which is its largest market, as well as access to Bemis’ material science expertise.

“Amcor identified flexible packaging in the Americas as a key growth priority and this transaction delivers a step change in that region,” Amcor CEO Ron Delia said.

Bemis president and CEO William F. Austen labelled the deal “transformational”.

“We believe this combination, which is an exciting growth story for both companies, will benefit all stakeholders,” Mr Austen said in a statement.

The deal comes at a time when consumer demand for environmental sustainability is shaking up the industry.

The company pledged to have all packaging to be recyclable or reusable by 2025.

“There are an increasing number of opportunities arising for a leading packaging company to capitalise on shifting consumer needs,” Mr Delia said.