Amcor Ltd
(ASX:AMC) has acquired Ball Plastics Packaging Americas from Ball Corporation for US$280 million.
The company says the purchase price represents four times the last 12 months acquired earnings before interest, tax, depreciation and amortisation of US$70 million.
Amcor says the Ball Plastics Packaging Americas has five plants in North America and sales of approximately US$600 million.
Amcor says the acquisition will provide net synergy benefits of around US$35 million with the company targeting earnings before interest, tax, depreciation and amortisation of US$105 million at the end of year three.
It will also boost sales at Amcor’s Rigid Plastics North America from US$175 million to around US$425 million.
The acquisition, Amcor says, will be funded from existing undrawn facilities at an interest cost of around 5%.
CEO Ken Mackenzie says this is an important strategic opportunity to further expand the company’s position in the Diversified Products market.
Amcor posted net profit after tax of $211.7 million for the 2009 financial year.
