Amcor Ltd. is buying a flexible packaging company in California in a $45 million deal that will help form the company’s new Flexibles Americas business group.
Amcor, based in Hawthorn, Australia, sees Deluxe Packages of Yuba City, Calif., as a “well-invested manufacturing plant with attractive technologies, capabilities and highly skilled co-workers.”
Deluxe Packages generates annual sales of about $42 million and makes high-performance flexible packaging for the fresh food and snack segments, Amcor said.
“North America is an attractive region for flexible packaging and this acquisition represents an excellent opportunity to accelerate profitable growth,” Amcor CEO Ron Delia said in a statement.
“With the addition of Deluxe Packages, Amcor’s customer value proposition in the specialty food packaging segment is strengthened with a combined East and West Coast footprint. This acquisition will enhance growth in priority segments and generate strong returns,” Delia continued.
Deluxe Packages was acquired by Paperboard Packaging Corp. in 1969 and later moved to Yuba City, about 45 minutes north of San Francisco. The company has been operating at a 100,000-square-foot plant since 2010, according to its website.
Products include fresh cut produce, frozen food and nut and dried fruit packaging. The company also makes packaging for bakery, dairy, candy, coffee, condiment, confectionery, grains, snack foods and pharmaceuticals, the website states.
This equipment will significantly lower the site’s CO2 emissions, reduce flaring and save around 60 gigawatt hours (GWh) energy each year. Project kick-off is in February 2021, with completion planned for 2023.
The acquisition significantly strengthens and expands Grace’s existing pharma portfolio. Pharma & Consumer is the largest, fastest growing and most profitable subsegment within Grace’s Materials Technologies business.
Solvay says it has decided to organize its soda ash and derivatives business into a separate and fully controlled legal structure.