Amcor buys Encon to grow rigid platform

Amcor has acquired preform manufacturer Encon for US$55 million (AU$77 million), in a move that will boost its rigid plastics arm.

Encon has made revenue of close to US$110 million (AU$154 million) servicing Amcor's customers in beverage, food and household segments.

The business operates from four manufacturing sites, producing the majority of preforms from one large-scale plant located based in Ohio in the US.

The acquisition is expected to reduce future capital requirements for Amcor's existing rigid plastics business.

Amcor CEO and managing director Ron Delia said the opportunity to acquire a well-capitalised came at “an attractive price”.

“Given the manufacturing overlap, the acquisition will deliver considerable operating synergies and generate strong returns for shareholders," he said.