Amcor has announced the completion of the purchase of packaging distributors Wayne Richardson Sales (WRS) as its quest to swell its already imposing portfolio continues unabated.
The packaging giant said the takeover would reinforce its overall market position and boost its channels to small and medium sized enterprises in particular.
No financial details of the deal were available for the Australia-based company which is one of the country’s largest independently-owned packaging distributors.
But Amcor revealed the purchase multiple was approximately 6.5 times fiscal year 2012 EBITDA.
The firm, which boasts eight distribution centres across Australia, has sales of over A$50m and 2,700 customers, said Amcor.
WRS is a distributor of a broad range of industrial packaging and packaging consumables to small and medium size customers.
Amcor forecast its new asset would deliver returns in excess of 20% by year three.
“The purchase of Wayne Richardson Sales improves the value proposition of Amcor’s existing packaging business and strengthens our market position,” said the firm’s managing director and CEO, Ken MacKenzie.
He added: “It brings to Amcor a new and more effective channel to small and medium sized packaging customers. The combined business will provide new products as well as additional services and enhanced technical support for customers.”