Amcor Limited? Hardly. The package maker offers a near unlimited range of boxes, cartons, cans, flexible and film packaging, PET (polyethylene terephthalate plastic) and glass bottles, closures, and sacks. It divides business into several segments. Flexibles, the largest, supplies packaging for fresh and processed food as well as medical products, and folding cartons for tobacco. Rigid Plastics produces PET containers for food and beverages, and some household, personal care, pharmaceutical, and chemical goods. Its Australasia and Packaging Distribution makes and sells wine bottles, carton board, displays, and packaging products to Australia and New Zealand.
Amcor Limited operates through a sprawling network of more than 300 sites spanning some 40 countries. It caters to a diverse group of regions. North America generates almost 35% of total sales, while Western Europe brings in roughly 30%. Amcor's home country of Australia alone generates almost 20%, while emerging markets account for the remainder of total sales.
Amcor's year-over-year sales grew sizably from 2010 to 2011, driven by a combination of additional earnings from business acquisitions and improved operating synergies. Its revenue was more than $12 billion for 2012, down from the more than $13 billion it posted in 2011. However, its profits surged to more than $400 million in 2012, mostly due to acquisitions and growth in its flexible packaging division in China. The company also managed to achieve its sixth consecutive year of positive cash flow in 2012.
Historically, one of the significant items impacting earnings is the company's appetite for acquisitions. Despite their cost, business acquisitions are central to Amcor's strategy for building its product portfolio, production capacity, and customer base, as well as gaining access to new markets.
In mid-2012 Amcor obtained Wayne Richardson Sales, a distributor of industrial packaging and packaging consumables catering to smaller and midsized businesses. Amcor fortified its market position inside Australia with the purchase as Wayne has a customer base of 2,700 customers throughout continent and generates sales of about $50 million. Months earlier, Amcor also swallowed up Aperio Group for $238 million in a deal that expanded its Asia Pacific flexible packaging operations. Aperio has a dozen manufacturing facilities in Australia, New Zealand, and Thailand.
Amcor purchased the assets of Ball Plastics Packaging in mid-2010 from Ball Corporation for $280 million. The acquisition gave the company five plants in North America and opened the door for Amcor to expand its presence into the region's diverse product market.
Earlier in 2010 Amcor bolstered its Flexibles segment by buying the packaging units of Rio Tinto subsidiary Alcan Packaging. The approximate $1.9 billion transaction included Alcan's Global Pharmaceuticals, Packaging Food Europe, Packaging Food Asia, and Packaging Global Tobacco units, which at the time operated through 80 plants in 28 countries. – less