Tekni-Plex has agreed to acquire three manufacturing facilities from Amcor’s flexible packaging business unit in a deal valued at around $215m.
Image: Amcor’s facility in Madison. Photo: courtesy of Amcor Limited.
The facilities are situated in Madison and Milwaukee of Wisconsin, as well as Ashland of Massachusetts.
Amcor’s facilities are involved in the production of a wide portfolio of sterilizable medical device packaging substrates, including coated and uncoated Tyvek, heat-seal and cold-seal coated paper and films, medical grade laminates and die-cut lids and labels.
Amcor said that the assets are disposed to resolve certain specific antitrust concerns raised in the US associated with the proposed combination of Amcor and Bemis.
The company also noted that total remedies required by the European Commission and the antitrust division of the US Department of Justice (DOJ) represent an immaterial proportion of the total sales for the combined company
Tekni-Plex CEO and president Paul Young said: “The acquisition expands our complex packaging solution portfolio for medical device manufacturers, many of whom are our customers today.
“Tekni-Plex’s medical products businesses – Colorite, Natvar and Dunn – have been supplying these same customers globally for decades, and we will continue to deliver on their quality and service expectations.”
Tekni-Plex said that Amcor manufacturing facilities purchase is the 11th acquisition that it has made in the past five years.
The deal is subject to the approval of the US Department of Justice and the closing of the merger between Amcor and Bemis.
In August 2018, Amcor agreed to buy Bemis in an all-stock transaction worth $6.8bn. As per terms of the deal, Amcor shareholders will own 71% stake in the combined company, while the remaining 29% interest will be owned by the Bemis shareholders.
Based in Neenah of Wisconsin, Bemis provides flexible and rigid plastic packaging solutions for customers in the food, consumer products, healthcare and pharmaceutical sectors.
Tekni-Plex is involved in the development and manufacturing of products for a range of end markets, including medical, pharmaceutical, food, beverage, personal care, household and industrial.
Based in Wayne of Pennsylvania, Tekni-Plex has manufacturing sites across eight countries worldwide.