Amcor has entered into an agreement to acquire Shanghai-based MDK, a leading provider of medical device packaging that generates approximately $50 million of annual sales.
With the medical space a key priority growth segment for Amcor, MDK’s coating capabilities, medical paper-based packaging offerings, and customer base complement Amcor’s existing portfolio, with teh group saying teh acquisition enhances its leading position in the Chinese market.
Amcor says the addition of MDK also strengthens its leadership in the broader Asia Pacific medical packaging segment – a key priority growth segment for the company, which now comprises four manufacturing sites serving the China, India and Southeast Asia markets.
“As Amcor continues to sharpen its focus on higher growth priority segments, the addition of MDK will enhance our already strong healthcare platform in the Asia Pacific region,” said Ron Delia, Amcor CEO.
“MDK’s talented team brings strong capabilities, and a complementary product and customer portfolio. We look forward to working together to unlock value creation opportunities for customers in this fast-growing, high-value segments, which we believe will help us continue to deliver strong returns for our shareholders.”
The acquisition of MDK follows the recent opening of Amcor’s new world-class Asia Pacific Innovation Centre in Jiangyin, China, which brings advanced packaging technologies and more sustainable material science to the region.
It also follows its recent introduction last year of a state-of-the-art dedicated healthcare packaging facility in Tuas, Singapore, which aims to address a current and future market need, as demand for healthcare packaging is rapidly increasing across the region.
The acquisition is subject to customary regulatory approvals and is expected to close in the March 2023 quarter.
