Amcor to buy up Constar

Amcor is set to acquire the US assets of plastic bottle and jar maker Constar International Holdings LLC, for an unconfirmed sum.

Constar, which makes plastic food and drink PET containers in the US and Europe, has filed for Chapter 11 bankruptcy protection in America – its third lurch into bankruptcy in five years.

Amcor Rigid Plastics US is the stalking horse bidder; Constar says the deal is subject to higher and better offers and approval of the Bankruptcy Court, as well as other customary closing conditions.

Amcor says Constar’s US business currently operates six plants, with annual sales of around US$190m. It says the company has an “attractive fit” with Amcor Rigid Plastics.

Constar is also evaluating the sale of its European operations to one or more third parties.

Louis Imbrogno, Jr, interim CEO of Constar, says, “The transaction with Amcor will allow Constar and its employees to continue to provide valuable products and services to our customers and expand our offering and capabilities by leveraging the financial and other resources of Amcor.

“We are excited for our employees and customers and believe this transaction creates a stable and viable long term partner for our customers and vendors.”

The transaction is expected to close during the first quarter of 2014, with further details of the acquisition – including the price – to be released following the end of the bankruptcy process.

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