Amcor, a pioneer in responsible packaging solutions development and production, said that it has reached a deal to buy Phoenix Flexibles, increasing Amcor's capacity in the rapidly expanding Indian market.
Phoenix Flexibles has one factory in Gujarat, India and the company sells flexible packaging for use in food, personal care and home care applications. This provides an estimated $20 million in yearly revenue for the company.
In India, Amcor now operates four flexible packaging facilities. The company is investing to quadruple its local footprint in the pharmaceutical and medical packaging sectors, and over the past three years has generated double-digit organic sales growth annually, surpassing growth in the underlying market.
Amcor's capacity to meet the ongoing high demand and generate significant returns for shareholders would be instantly increased with the inclusion of Phoenix Flexibles' well-capitalized and well-placed production facility. The acquisition also delivers skills enabling Amcor to increase its product portfolio in desirable high-value areas and adds sophisticated film technology, enabling local manufacturing of a wider range of more sustainable packaging solutions.
Amcor Flexibles Asia Pacific President Mike Cash Stated,"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."
The transaction is expected to close in the third quarter of September 2023, subject to usual closing procedures.