As expected, Alcan’s Beauty and Personal Care division is not included in the deal. Amcor said that it had only offered to buy the businesses meeting the group’s growth objectives in its strategic business areas of flexible packaging and folding cartons packaging. Rio Tinto stated the division would be divested separately, but did not disclose the identity of the potential buyer.
The combined company will be one of the world’s leading packaging companies with significant breadth of expertise, products and services. As at June 2009, Amcor generated AU$ 9.53 billion in sales from operations in 34 countries and has 226 sites worldwide, with approximately 21,000 employees. The parts of Alcan Packaging that Amcor has offered to acquire would add approximately US$ 4.1 billion in sales and 14,000 employees across 80 plants in 28 countries.
“This acquisition is a clear fit with our strategic growth plans, building greater shareholder value by expanding our business whilst obtaining the economies of scale that comes with an opportunity such as this,” commented Ken MacKenzie, Amcor’s Managing Director and Chief Executive Officer
The acquisition is subject to regulatory approvals. Closing of the acquisition is not expected to occur for several months. Until this time, both Amcor and Alcan Packaging will continue to operate as separately run companies.
Rio Tinto always said it has no intention of holding Alcan’s packaging division. The group recently sold the Food Americas operations of Alcan Packaging to US flexible packaging supplier Bemis Company.
