Australia-based packaging producer Amcor has purchased the majority of France-based specialty packaging firm Alcan Packaging from global mining giant Rio Tinto for US$1.9 bn. The divisions acquired are, in order of revenues in 2009, Food Europe, Global Pharmaceuticals, Global Tobacco and Food Asia. Alcan’s Food Americas division has been sold to Bemis Company in a separate deal for US$1.2 bn. As a result of the transaction, Amcor has leading global positions in two key growth markets—flexible packaging and folding carton packaging for tobacco.

The acquisition is particularly timely given that profit before interest and tax (PBIT) generated by the newly acquired businesses increased by as much as US$28 mn, or 47%, during the six months ending December 2009. The rise was predominately due to improved economic conditions and benefits from company restructuring.

Amcor’s managing director and CEO, Ken MacKenzie, said: “We are delighted to finalise the acquisition of the Alcan Packaging assets and have their talented team join Amcor. From a strategic perspective, the businesses we have acquired are strongly aligned with our nominated growth segments, and provide the ability to substantially improve the value proposition for our customers. We are now focused on ensuring seamless integration of these businesses and on achieving the synergies and opportunities offered by this acquisition.”