Global packaging solutions provider Amcor has announced the signing of an agreement to acquire India-based flexible packaging company Phoenix Flexibles.

The companies have not disclosed the financial details of this deal.

The transaction is now subject to certain customary closing procedures. It is expected to be completed in September this year.

The Switzerland-headquartered company said that the acquisition is expected to expand its existing production capacity in India’s high-growth market.

Amcor Asia-Pacific president Mike Cash said: “Amcor continues to see substantial opportunities to grow our flexible packaging business in India.

“With this acquisition, we are investing to maintain and build upon the significant momentum the business has delivered over several years.

“The scalable nature of the acquired facility, combined with the localisation of new capabilities, further enhances our customer value proposition in this attractive high-growth market.”

Currently, Amcor has a total of four flexible packaging facilities in India.

The company said its business delivered a 'double-digit organic sales growth per annum' over the past three years, which helped outpace growth in the underlying market.

The latest investment is expected to double Amcor’s local footprint, mainly in the pharmaceutical and medical packaging sectors.

Phoenix owns one packaging facility within Gujarat, India, and the company generates annual revenue of nearly $20m, primarily from the sale of flexible packaging solutions and products for the homecare, food, and personal care sectors.

With the addition of this ‘well-capitalised’ and strategically located plant, Amcor aims to immediately boost its production capabilities to address the increasing demand of its customers in the region.

This addition is expected to help the global packaging company drive strong returns for its shareholders.

Furthermore, Phoenix’s acquisition will add advanced film technology to Amcor's portfolio, allowing it to undertake the production of a comparatively broader range of more sustainable packaging solutions at a local level.

This will eventually allow Amcor to expand its packaging solutions offering in high-value segments.