What: The $15.5 billion packaging giant Amcor Limited (ASX: AMC) has announced the US$45 million (equivalent to $62 million in Australian dollars) acquisition of Deluxe Packages.
So What: Deluxe Packages is a privately owned flexibles packaging business based in Yuba City, California, which generates revenues of around US$42 million.
According to Amcor's ASX release, Deluxe Packages is focused on "providing high-performance flexible packaging products to customers in the fresh food and snack segments" and will be incorporated into the newly-formed Flexibles Americas business segment.
Now What: For investors looking to identify ASX-listed companies with appealing growth profiles, Amcor is one for the watch list.
Having spun-off its carton and beverage container businesses into the now separately listed Orora Ltd (ASX: ORA), shareholders in Amcor enjoy exposure to faster growth avenues such as North American flexibles packaging.
While Amcor's growth prospects may not significantly change this current financial year (based on consensus data provided by Morningstar), looking out over the next couple of years and earnings are set to expand significantly. Based on forecasts for FY 2018, the stock appears to be trading on an undemanding multiple.
The start of a new calendar year also offers investors a prime opportunity to reassess their portfolio positions.
Given the lacklustre outlook for our domestic economy, many investors may choose to skew their portfolio towards both Australia-focussed stocks that can grow at above market rates and towards stocks which offer exposure to faster growing overseas economies. Amongst the blue chips, Amcor, Brambles Limited (ASX: BXB), Computershare Limited (ASX: CPU) and QBE Insurance Group Ltd (ASX: QBE) may all hold appeal for long-term investors.
