Amcor Acquires Ball Plastics Packaging Americas
Amcor Rigid Plastics (Ann Arbor, MI) has announced the $280 million acquisition of Ball Plastics Packaging Americas. The purchase complements the company’s PET beverage packaging business and expands its role in the high-growth diversified products packaging category which includes health care/pharmaceutical, home care, personal care, food, and distilled spirits, says William Long, Amcor Rigid Plastics’ president.
The deal brings expanded material and process capabilities, including multilayer, retort, and barrier technologies, along with know-how to manufacture HDPE and PP extrusion-blow molded containers.
“This acquisition makes us a larger and more diverse company positioned to offer a broader range of innovative and technology-based solutions to our customers,” said Long. “We’ve again stepped outside of PET and we expect to take advantage of the growth opportunities presented by our new material and processing expertise,” he said.
Amcor recently expanded from its PET packaging base with the February acquisition of Alcan’s Pharma Pharmaceutical Plastics packaging business, which produces PP, PE, and PET rigid containers for over-the-counter drugs, vitamins, and other pharmaceutical needs. That deal moved Amcor into new applications, materials, and processes, and providing an entry into the pharmaceutical market.
With the Ball acquisition, Amcor remains committed to the North American carbonated soft drink (CSD) and water segments. However, the company said it see strong opportunities in diversified products such as multilayer food packages and retortable containers for food and beverages, including coffee drinks, nutraceutical beverages, and other dairy-based beverages.
Ball’s proprietary barrier technology includes Gamma-Clear multilayer OPP containers for barrier food applications and Gamma PP retort bottles that withstand retort sterilization temperatures up to 250 F. Ball also offers other barrier solutions including Plasmax SiOx internal barrier coating.
The Ball buy also opens up new market areas including wine, retorted food, and non-PET food and beverage packaging. While Ball’s historic business has been based in North America, these new technologies and product categories will be transferable to Amcor’s growing businesses in Mexico and Latin America.
The acquisition of Ball Plastics Packaging Americas includes five plants in North America and sales of approximately $600 million. The company employed approximately 950 co-workers and maintains manufacturing capacity for more than 5 billion units of PET, HDPE, and PP containers per year.