Amcor PLC AMCR disclosed inking an agreement to acquire Phoenix Flexibles for an undisclosed amount, to boost its footprints in the high-growth Indian market.
The acquisition is expected to close in the September 2023 quarter, subject to customary closing procedures.
Amcor presently has four flexible packaging plants in India, with the business delivering double-digit organic sales growth annually over the last three years.
Phoenix Flexibles has one plant located in Gujarat, India, and the business generates annual revenue of approximately $20 million from the sale of flexible packaging for food, home care, and personal care applications.
The acquisition will facilitate Amcor to expand its product offering in attractive high-value segments along with adding advanced film technology, enabling local production of a broader range of more sustainable packaging solutions.
"Amcor continues to see substantial opportunities to grow our flexible packaging business in India. With this acquisition, we are investing to maintain and build upon the significant momentum the business has delivered over several years. The scalable nature of the acquired facility, combined with the localization of new capabilities, further enhances our customer value proposition in this attractive high-growth market," said Mike Cash, Amcor Flexibles Asia Pacific President.
As of March 31, 2023, AMCR's cash and cash equivalents stood at $564 million.
Price Action: AMCR shares are trading lower by 0.21% at $9.70 on the last check Friday.
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