Amcor nets 2,700 customers in $50 million deal
Amcor has snapped up industrial packaging and packaging consumables company, Wayne Richardson Sales, in a $50 million deal that sees the packaging giant’s customer base grow by over 2,700.
Melbourne-based Amcor has been one of largest packaging companies in the Asia Pacific region since its long-awaited $238 million acquisition of flexible packaging producer, Aperio Group, was completed in March this year.
The Australian competition watchdog had held up Amcor’s acquisition of Aperio Group over fears the deal would lead to a monopoly for the company in the Asia Pacific region. In March it gave the deal the green light.
However, this week’s acquisition of sees Amcor’s local market share expand even further, with the company also acquiring Wayne Richardson Sales’ existing 2,700 customers locally. Until now, the packaging consumables company was one of the largest independently owned packaging distributors in Australia, with a network of eight distribution centres across the country.
According Amcor, the acquisition is expected to deliver returns of around 20 per cent within the first three years of ownership.
“The purchase of Wayne Richardson Sales improves the value proposition of Amcor’s existing packaging business and strengthens our market position,” says Amcor chief, Ken MacKenzie. “It brings to Amcor a new and more effective channel to small and medium sized packaging customers.
“The combined business will provide new products as well as additional services and enhanced technical support for customers,” he says.