#None #Joint Venture #Amcor #BCNA

Amcor Completes Sale of BCNA Joint Venture Interest

Amcor, a prominent global leader in responsible packaging solutions, has successfully completed the sale of its 50% interest in Bericap North America (BCNA) for a total of $122 million. This significant deal, finalized on December 27, marks a strategic move for Amcor as it aims to utilize the proceeds primarily for debt reduction, thereby bolstering its financial health.

In the fiscal year 2024, the joint venture with BCNA reported total sales of approximately $190 million. The adjusted Earnings Before Interest and Taxes (EBIT) stood at around $19 million, with the adjusted net income attributable to Amcor being about $8 million during the same period. It is important to note that these figures had previously been fully consolidated under Amcor's Rigid Packaging segment.

Looking ahead, Amcor anticipates that the transaction will not adversely affect its financial outlook for the fiscal year 2025, particularly after accounting for the reduction in interest expenses following the sale. This decision is part of Amcor's ongoing strategy to strengthen its balance sheet and focus on its core operations in the packaging industry.

Amcor is widely recognized for its commitment to creating sustainable packaging solutions across various sectors, including food, beverage, pharmaceuticals, and personal care. The company collaborates with leading brands globally to protect their products, enhance brand differentiation, and streamline supply chains. Furthermore, Amcor is dedicated to increasing the recyclability and reusability of its packaging, evident in its ongoing efforts to utilize more recycled materials in their products.

As of fiscal year 2024, Amcor employed approximately 41,000 people, generating impressive annual sales of $13.6 billion from operations spanning 212 locations across 40 countries. This extensive network underscores Amcor's critical role in the global packaging landscape.

The sale of BCNA is seen not only as a financial maneuver but also as part of Amcor's broader strategy to effectively navigate the rapidly changing market conditions in the packaging industry. By reducing debt, Amcor aims to position itself more favorably for future growth opportunities, enhancing its capacity to innovate and lead in sustainable packaging solutions.

In conclusion, the successful divestment of its interest in BCNA not only reflects Amcor's proactive approach toward financial management but also reinforces its commitment to responsible business practices in the packaging sector, further assuring stakeholders of its resilience and adaptability in a competitive marketplace.