Amcor’s recent acquisition of US converter Deluxe Packages in a US$45-million deal, while relatively small, is strategically significant. It will reinforce the company’s position in the specialty food segment, especially fresh-cut salads, and provide a modern US West Coast production base alongside an existing East Coast facility. Deluxe becomes part of Amcor’s recently formed Flexibles Americas business group.
Established in 1969, privately held Deluxe Packages produces flexible packaging at a 100,000-sq-ft facility in Yuba City, CA. With annual sales of around US$42 million, the company supplies a variety of end-use markets, including fresh-cut salads, frozen food, nuts and dried fruit, snacks, bakery, dairy, confectionery, pharmaceutical and industrial markets. The two companies’ combined North American sales in the growing US fresh-cut salad sector now ranks Amcor alongside market leader Sonoco. Deluxe Packages’ production capabilities include up to 10-color flexo printing (Fischer & Krecke), off-line and in-line lamination, anti-fog and micro-perforated films, and standup pouchmaking.
Compared with its leading position in Europe in flexible packaging, Amcor remains relatively under-represented in North America, and it would not be surprising if further strategic bolt-on acquisitions in the region soon follow.