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Amcor to sell interest in BCNA joint venture for $122 million
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Monday, 11 November, 2024, 08 : 00 AM [IST]
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Zurich
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Amcor, a global leader in developing and producing responsible packaging solutions, announced that it has entered into an agreement to sell its 50% interest in Bericap North America for $122 million. Established in 1997, it is a 50/50 joint venture between Amcor Rigid Packaging and Germany-based Bericap that manufactures closures for beverage, food and industrial end markets in three facilities in US, Canada, and Mexico.
Fiscal 2024, total sales for the joint venture were approximately $190 million and Adjusted EBIT was approximately $19 million, both of which were fully consolidated under its Rigid Packaging business. Adjusted net income attributable to the company was approximately $8 million. Upon closing on or before December 31, 2024, cash proceeds will be used to reduce debt. Net of a resulting reduction in interest expense, the transaction is not expected to have an impact on Amcor’s financial outlook for fiscal 2025.
Peter Konieczny, CEO, Amcor, said, “We’ve had a long and respectful relationship with Bericap over the past 27 years. At this juncture, we have chosen to unwind the joint venture given differing views on near-term capital requirements and resulting returns. While Amcor continues to operate in the closures space as it remains a category of interest, we are committed to maintaining our disciplined approach to capital allocation. We thank the Bericap team for the many years of partnership and we wish them well for the future.”
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