From The Wall Street Journal, link to article
Amcor said Wednesday it has agreed to buy Aperio Group for A$238 million,
subject to regulatory and other usual conditions, including approval from the
Aperio is owned by private equity concern Catalyst Investment Managers and
is one of the Asia Pacific’s leading producers of flexible packaging products
with 13 manufacturing facilities in Australasia and a plant in Thailand and has
annual revenues of A$350 million, Amcor said in a statement.
After the purchase, the combined flexible packaging business in the Asia
Pacific will generate turnover of A$1.2 billion from 34 plants, it said.
The Australian Competition and Consumer Commission is already investigating
the transaction and previously said it intends to make a final decision on
Late February, in a statement of issues driven in part by responses from
customers and other suppliers, the Australian Competition & Consumer
Commission, said for now it considers Amcor’s proposed acquisition may
substantially lessen competition.
The merger parties told the ACCC there is only limited overlap between their
respective operations, in terms of products supplied, and that the proposed
acquisition wouldn’t result in significant market concentration.
Under Catalysts’ watchful eye, Aperio’s strategy of industry consolidation
saw it acquire FPS International in December 2005, Epic Packaging and the
Finewrap Group both in July 2006 and a 70 percent stake in New Zealand-based Packsys
in December 2008.
“It looks like a well priced
acquisition and they have a reasonable synergy opportunities as well…Amcor have
a good track record of acquisitions over the past few years,” Macquarie analyst
John Purtell told Deal Journal Australia. “There’s a degree of confidence by
announcing the deal that the company thinks they’ll secure ACCC approval.”
Deal Journal Australia reported in January that Pact Group was the other interested buyer of Aperio.