Up until now lacking a major flexible packaging manufacturing presence in South America, Amcor is to acquire Alusa, which will immediately establish the company as Central and South America’s leading flexible packaging converter with a market share in the region estimated by PCI at 8%, just ahead of Bemis.
Amcor’s agreement to acquire Alusa, South America’s largest flexible packaging converting group in a US$435 million deal, marks yet another important step in extending the company’s global reach. This is Amcor’s largest purchase since it acquired Alcan in 2010. Alusa, with annual sales of around $375 million, is owned by Techpack S.A., a company listed on the Santiago Stock exchange, and Nexus Private Equity. The acquisition, which is subject to approval by Techpack shareholders and relevant regulatory authorities, is expected to be completed within the next few months.
Completion of the deal will see Amcor having a major manufacturing presence on five continents and a geographical footprint matched only by the American company Sealed Air. Amcor is the dominant player in Europe and Australasia and now also in South America.
Based in Santiago, Chile, Alusa has production plants in Argentina, Chile, Colombia and Peru, producing packaging materials for food, personal care, frozen products, pharmaceutical, pet food and industrial applications:
- Alusa, based in Santiago, Chile, has annual flexible packaging production of over 19,000 tonnes, including Productos Plasticos HYC, another Santiago converter acquired in 2014. Exports have grown rapidly in recent years, especially to Mexico, and now account for over 30% of sales.
- Aluflex, with production in excess of 8,300 tonnes, is located in San Luis in northern Argentina. Principal markets served include mustard, mayonnaise, ketchup, tomato sauces and pet foods.
- Based in Cali in western Colombia, Flexa is the country’s second largest flexible packaging converter, with production of more than 9,000 tonnes. About 70% of sales are for food – notably UHT milk, ketchup, mayonnaise and powdered fruit juices, with the balance non-foods such as fabric conditioners. About 12% of sales are exported, mainly to countries in Central America and Venezuela, with some also going to Chile and Mexico.
- Peruplast produced around 29,000 tonnes of flexible packaging in 2014. The company operates from a facility near Peru’s capital Lima and is by far the country’s largest flexible packaging converter. Peruplast serves a wide range of end – use markets in the food and non-food sectors as well as labels. Exports account for about 40% of sales.
However, Amcor still lacks a major flexible packaging manufacturing presence in Brazil, which accounts for nearly 50% of flexible packaging demand of nearly $5 billion in the region. The company currently has a medical and hospital packaging facility in Brazil and a plant in Chile that produces wine over caps and screw caps for wine. Amcor will surely be eying Brazil for further bolt on acquisitions to better service customers across the whole continent.
