CLEVELAND, Aug. 7, 2018 /PRNewswire/ -- On August 6, Amcor (Australia) announced that it was in the process of acquiring US-based flexible packaging giant Bemis in an all-stock transaction. The transaction will create the world leader in flexible packaging, with $9 billion in sales and a broad global reach.
The Freedonia Group's global packaging analyst Mike Richardson assessed the deal in terms of the complementary nature of the two companies: "While both firms have a substantial presence in flexibles, they weren't big in the same regions. Amcor is a heavyweight in Europe and Asia, but less so in the US. Meanwhile, Bemis brings to the merger a much stronger position in North America." Freedonia's packaging market studies identify Bemis as the US market leader in areas such as barrier films, converted flexible packaging, and pouches.
Flexible packaging will account for about 2/3 of "New Amcor", as the new entity is currently titled. Bemis' rigid packaging business, which is mostly based in the US, will augment Amcor's larger rigid business. Amcor's specialty cartons and closures businesses will also be part of New Amcor.
There are still a lot of shareholder and regulatory hurdles to clear, so the deal isn't expected to be finalized until early 2019. "However, it's likely to have the more immediate effect of stimulating additional acquisition activity in the packaging industry," added Richardson. "Moves of such magnitude often do."
The Freedonia Group offers an extensive collection of Packaging studies.
About The Freedonia Group, a division of MarketResearch.com – The Freedonia Group is a leading international industrial research company publishing more than 100 studies annually. Since 1985, we have provided research to customers ranging in size from global conglomerates to one-person consulting firms. More than 90% of the industrial companies in the Fortune 500 use Freedonia Group research to help with their strategic planning.
SOURCE The Freedonia Group