American private equity firm Kohlberg & Company has signed an agreement to acquire three flexible packaging plants from Amcor in a deal valued at around $394m (£309.5m).
Image: Kohlberg will acquire three former Bemis flexible packaging facilities. Photo: courtesy of rawpixel from Pixabay.
Under the deal, Kohlberg will acquire three former Bemis facilities situated in the UK and Ireland.
The divested facilities generate annual sales of around €170m (£133.5) from the sale of flexible packaging for certain healthcare products.
The deal is in line with the European Commission’s (EC) condition, which enabled Amcor to complete the acquisition of US-based flexible packaging firm Bemis.
The sale, which is expected to complete in the coming weeks, is subject to customary approvals, including European Commission approval of Kohlberg as the buyer.
Earlier this month, Amcor completed previously announced $6.8bn (£5.3bn) merger deal with Bemis, which is engaged in the distribution of rigid and flexible packaging products to customers in the food, consumer, medical, pharmaceutical and other industries.
In August 2018, Amcor had agreed to purchase Bemis to optimise the consumer packaging segment and provide significant value for shareholders, customers and employees.
The combined company firm is operating as Amcor Plc as well as trading on the New York Stock Exchange and the Australian Securities Exchange.
The merged entity is said to have increased focus on major end markets and product segments such as protein and healthcare packaging, barrier films and foils.
In April this year, Amcor agreed to sell its three manufacturing facilities units to Tekni-Plex in a deal valued at around $215m (£169.2m), to resolve certain specific antitrust concerns raised in the US associated with the proposed merger.
Amcor is involved in the development and manufacturing of advanced packaging solutions for the customers in the food, beverage, pharmaceutical, medical, home and personal-care markets.
The company, which works with major companies across the world, supplies a range of flexible and rigid packaging, specialty cartons, closures and services.
With around 48,000 employees, Amcor generates $13bn (£10.2bn) sales from operations that span around 250 locations in over 40 countries across the globe.