Amcor Rigid Plastics set to expand business in North America

Amcor Rigid Plastics, Ann Arbor, Michigan, has entered into an agreement to acquire the assets of Sonoco’s plastic blow molding business in North America for $280 million.

Amcor Rigid Plastics, a subsidiary of Australia-based Amcor Ltd., has 62 facilities in 12 countries.

Through its blow molding business Sonoco manufactures custom rigid plastic bottles, jars, overcaps and closures for the food, beverage, pharmaceutical, health and beauty and personal care markets. Sonoco Blow Molding has seven plants in the United States and Canada.

“This acquisition will directly support our strategy to meet our customers’ growing needs,” says Mike Schmitt, president of Amcor Rigid Plastics. “The combined assets and talents of Amcor Rigid Plastics and Sonoco will allow us to meet strategic customer growth objectives, while expanding our extrusion and injection molding assets and adding advanced decorating capabilities.”

According to Jack Sanders, Sonoco president and CEO, the decision to sell the blow molding operations was made to focus on Sonoco’s consumer packaging portfolio and to provide resources to further the company’s expansion into its targeted growth businesses, including flexible packaging, thermoforming rigid plastics and temperature-assurance packaging. 

The acquisition is subject to regulatory approvals. Until the transaction is closed, Amcor Rigid Plastics and Sonoco will continue to operate as two separate companies.

Amcor Ltd. is an international company with more than 180 sites in more than 40 countries.