Amcor, which creates packaging solutions using flexibles and rigid plastics packaging, on May 12, 2016 acquired acquisition of Plastic Moulders Limited, a leading manufacturer of custom precision moulding in North America, for CAD 38 million ($ 30 million). 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.
Ron Delia, CEO and managing director, Amcor, 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.”
