Comprehensive M&A data with integrated detailed company information

Amcor pushes past antitrust concerns by selling US assets
Posted on Tuesday, 23 April 2019 13:52
Amcor is handing over three manufacturing facilities housed in its flexible packaging arm to Tekni-Plex for USD 215.00 million in cash in order to push through its USD 6.80 billion public takeover of Bemis.

The plants in Milwaukee, Wisconsin, Ashland (Massachusetts) and part of the site in Madison, Wisconsin generate annual revenue of about USD 100.00 million.

Amcor’s facilities have a broad portfolio of sterile medical device packaging substrates that include coated and uncoated Tyvek, heat-seal and cold-seal coated paper and films, medical grade laminates and die-cut lids and labels.

Tekni-Plex is a developer and manufacturer of packaging materials, medical compounds and medical tubing and already has an existing complex packaging portfolio for medical device manufacturers.

According to the statement, the company noted this deal represents its 11th purchase in the past five years as part of an ongoing strategy of growing inorganically through transformative acquisitions and strategic add-ons.

Its last buy was in November 2018, when it bought Beyers Plastics, a Belgian cleanroom class 7 extruder and converter of polyethylene PE film, from investment company FAMO.

While Tekni-Plex is using the deal to expand its medical business, Amcor and Bemis are using the disposal to draw a line under the concerns of the US department of justice’s (DOJ’s) antitrust division regarding their multi-billion-dollar combination.

Once the sale of the operations to Tekni-Plex receives approval and consent from the DOJ, all antitrust clearances which are conditional to closing will have been completed.

The two can then officially merge on 15th May to establish Amcor plc as a dual-listing holding company with pro forma sales of USD 13.00 billion and USD 2.10 billion in earnings before in interest, tax, depreciation and amortisation.

© Zephus Ltd