Australian packaging group acquires US preform maker

Amcor, a Melbourne, Australia-based producer of rigid and flexible packaging products, has announced that it has acquired Encon, a privately owned manufacturer of polyethylene terephthalate preforms based in Dayton, Ohio.

Amcor is purchasing Encon for US$55 million and the acquired business will form part of Amcor’s Rigid Plastics business group, the company says.

Encon generates revenues of approximately US$110 million servicing both Amcor’s existing customers and new customers within the beverage, food and household segments.

The business operates from four manufacturing sites, producing the majority of preforms from one large  plant located in Dayton.

According to Amcor, the business is well capitalized and this acquisition is expected to reduce future capital requirements for Amcor’s existing Rigid Plastics business.

Amcor CEO and Managing Director Ron Delia says, “This acquisition provides an excellent opportunity to acquire a well capitalized business at an attractive price. Given the manufacturing overlap, the acquisition will deliver considerable operating synergies and generate strong returns for shareholders.”