Australia-based flexibles giant Amcor has acquired Chinese flexible product manufacturer Hebei Qite Packing in a $36 million deal.
The purchase will add to its existing 11 packaging plants in the region.
Qite operates one plant in the Northern Chinese province of Hebei and generates annual sales of $34 million, largely through its domestic customers in the dairy and food segments.
Amcor managing director and CEO Ron Delia said Amcor continued to have substantial opportunities to grow its flexible packaging business in Asia.
“China is an attractive growth market for flexible packaging, and this acquisition will enhance our platform for growth with new and existing customers in the important northern region,” he said.
According to the packaging company, the $36 million deal is expected to generate strong returns for its shareholders within three years, in addition to its synergy benefits.
The acquisition will build on Amcor’s existing troop of 11 Chinese packaging plants, two of which are in close proximity to Qite in northern China.
The Qite takeover closely follows news Amcor has finalised its part-acquisition of North American rigid plastics company Sonoco.
