Amcor Ltd. plans to sell the operations of three packaging manufacturing facilities, including two in Wisconsin, to Pennsylvania-based Tekni-Plex Inc. as part of an effort to win antitrust approval for its merger with Neenah-based packaging manufacturer Bemis Co. Inc.
Bemis and Amcor announced their $6.8 billion all-stock merger in August. The deal will create a company with around $13 billion in annual revenue. The companies are targeting a May 15 completion date.
Tekni-Plex is paying $215 million in cash for the Amcor businesses in Milwaukee, Madison and Ashland, Massachusetts. The sale is still subject to final approval by the U.S. Department of Justice. The Milwaukee facility is located at 6161 N. 64th St. and is currently owned by Broadway Equities LLC, which has its principal office in Cedarhurst, New York, according to Milwaukee County records. The building has an assessed value of $3.4 million.
Combined, the three plants generated around $100 million in annual sales of flexible and health care packaging products for Amcor, which is operated from Australia but has its headquarters in Switzerland
Tekni-Plex said the deal provides it with a broad portfolio of medical device packaging substrates.
“The acquisition expands our complex packaging solution portfolio for medical device manufacturers, many of whom are our customers today. Tekni-Plex's medical products businesses – Colorite, Natvar and Dunn – have been supplying these same customers globally for decades, and we will continue to deliver on their quality and service expectations," said Paul Young, president and chief executive officer of Tekni-Plex.
The deal also brings 150 employees from the three plants to Tekni-Plex. Amcor did not immediately respond to requests for additional information regarding the size of operations in Milwaukee, and Tekni-Plex did not respond to questions about plans for the facility.