Packaging company Amcor announced that it has entered into an agreement to acquire Phoenix Flexibles, expanding Amcor’s capacity in the Indian market. Phoenix Flexibles has one plant located in Gujarat and the business generates annual revenue of approximately $20 million from the sale of flexible packaging for food, home care and personal care applications.
Meanwhile, Amcor currently has four packaging plants in India. The business has delivered double-digit organic sales growth per annum over the last three years, significantly outpacing growth in the underlying market, and is also investing to double its local footprint in the pharmaceutical and medical packaging categories.
The acquisition will increase the capacity at Amcor to cater to the high demand and drive strong returns for shareholders. The acquisition also adds machine-direction oriented film technology, enabling local production of a broader range of sustainable packaging solutions, and brings capabilities allowing Amcor to expand its product offering in high-value segments.
“Amcor continues to see substantial opportunities to grow our flexible packaging business in India. With this acquisition, we are investing to maintain and build upon the significant momentum the business has delivered over several years. The scalable nature of the acquired facility, combined with the localization of new capabilities, further enhances our customer value proposition in this attractive high-growth market,” said Amcor Flexibles Asia Pacific President Mike Cash.
The acquisition is subject to customary closing procedures and is expected to close in the September 2023 quarter.