Amcor buys assets of Ball Plastics Packaging

Packaging company Amcor Ltd. is purchasing the assets of Ball Plastics Packaging Americas from Ball Corp. for US$280 million to add five plants in North America.

The transaction is expected to close during the third quarter of 2010.

Victoria. Australia-based Amcor, whose biggest market is North America, is trying to reverse several years of declining annual profits. The purchase of Broomfield, Colo.-based Ball allows Amcor to transition into new markets for wine bottles and other food packaging, the company said in a June 15 press release.

“There are opportunities to acquire businesses at prices that are substantially lower than a few years ago,” Amcor CEO Ken MacKenzie said in the statement. “The capabilities of the Ball acquisition will help us expand our business in North America and to leverage new technologies and products in our growing Latin America business.”

The manufacturing plants involved are located in Ames, Iowa; Batavia, Ill.; Bellevue, Ohio; Chino, Calif.; and Delran, N.J. 

The sale includes US$265 million cash at closing and US$15 million of contingent consideration, the statement said.