Amcor acquires Richardson Capital-backed Plastic Moulders

Amcor Ltd has acquired Plastic Moulders Ltd, a Canadian manufacturer of precision injection moulded plastic products for customers in North America. The purchase price was $38 million (US$30 million). Amcor, an Australian packaging business, said the acquisition will generate synergies in terms of procurement, manufacturing costs and overhead, and broaden its product offering. Founded in 1966, Toronto-based Plastic Moulders has been a portfolio investment of Canadian private equity firm Richardson Capital since 2004, according to Thomson Reuters.

PRESS RELEASE

Amcor announces acquisition of Plastic Moulders Limited, a leading manufacturer of custom precision moulding

12th May 2016

Amcor announces today, the CAD 38 million (USD 30 million) acquisition of Plastic Moulders Limited, a rigid plastics business that manufactures containers and closures for the food and home / personal care markets in North America.

The business operates a single plant in Toronto and has sales of approximately CAD 35 million.

Plastic Moulders has established relationships with a number of large multinational customers and brings new technologies including precision injection moulding and in-mould labelling. The latter involves embedding the label in the container wall at the same time the container is extruded, thus removing the need for any secondary processes to adhere a label to the container.

The acquisition will generate considerable synergies in terms of procurement, manufacturing costs and overhead.

Amcor CEO and Managing Director, Ron Delia, said, “The Amcor Rigid Plastics business has significant growth opportunities in market segments outside of the traditional non-alcoholic beverage markets. Our strategy to grow this business includes acquiring companies like Plastic Moulders that provide specialised manufacturing capabilities, which will enable Amcor to broaden our product offering for the benefit of current and future customers.

“Total sales into these markets are approximately $500 million inclusive of Plastic Moulders sales, and there are significant opportunities to build on this position with organic growth and further acquisitions.

“We welcome Plastic Moulders to the Amcor portfolio and are confident that this acquisition will generate strong returns for shareholders.”

For further information please contact:
John Murray
Executive GM Corporate Affairs
Amcor Limited
+61 3 9226 9005

Photo courtesy of Plastic Moulders Ltd