Amcor has entered into an agreement to acquire the PET container and closure assets of Schmalbach-Lubeca (Schmalbach) for $2.875 billion (1.725 billion Euros).
Schmalbach is the world’s largest manufacturer of PET containers and is the leader in North America, Europe and Latin America with sales of $2.5 billion in 2001.
In addition to servicing the carbonated soft drink (CSD) and bottled water market, the combined PET containers group will also target the higher value-added and faster growing market segment of custom bottles.
Amcor and Schmalbach’s PET businesses had combined calendar 2001 sales of $3.3 billion. Together, they will operate 51 plants in 20 countries and will be the leader in North America, Latin America and Europe.
Schmalbach-Lubeca White Cap, with three plastic closure plants located in the US and Mexico, is also one of the world’s leading manufacturers of food and beverage closures.
Together, the two companies closures operations had combined calendar 2001 sales of around $1 billion and will operate 21 plants in 15 countries.
The acquisition itself will be funded through a combination of new equity, debt and the sale of Amcor’s 45% interest in Kimberly-Clark Australia. The equity raising will include a placement of new shares, entitlement offers to shareholders and a new issue of hybrid securities.
The acquisition is subject to regulatory approvals.