Amcor buys US tobacco packaging assets

Published: 08:30:06 AM, Fri 15 February 2013 UTC

Amcor has agreed to buy some of the printing assets of a US-based tobacco packaging group for $US114.8 million ($A111.45 million).

The acquired businesses of AGI-Shorewoods Tobacco Packaging and Specialty Folding Carton Operations includes plants or assets in each of South Korea, US, Mexico and China.

Amcor said on Friday the acquisition expands its business in the higher-growth regions of Asia and Latin America and includes specialty folding carton production assets in the United States.

For the 2012 calendar year the acquired business had sales of $US126 million ($A122.32 million) and earnings before interest, tax, depreciation and tax of $US22 million ($A21.36 million).

Amcor said the acquisition was expected to deliver a return on investment of more than 20 per cent by the end of the third year of its ownership.

"This acquisition is aligned with our strategic objective of expanding our position in emerging markets," Amcor managing director Ken MacKenzie said in a statement.

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