Amcor [Australian multinational] announces today an agreement to acquire the flexible packaging operations of Jiangsu Shenda Group for RMB350 million. The purchase price represents 8.0 times CY2012 EBITDA. Returns, measured as EBIT to funds employed, are expected to be over 20% by CY2016 underpinned by cost synergies and continued strong organic growth in the Chinese market…Full text article: Amcor Press Release July 2013

Key point

  • The two acquired plants in Jiangsu province have an annual sales of approximately CNY 440 million (~US$71.2 million), two-thirds of which are to pharmaceutical, snacks and culinary businesses

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