Amcor Limited (ASX: AMC) and Bemis Company, Inc. (NYSE: BMS) announce that further, important progress has been made towards completion of their all-stock transaction, with the filing of shareholder documentation and finalisation of Board of Director and Senior Leadership appointments.
The combination of the two complementary companies offers a transformational and unique opportunity to create the global leader in consumer packaging, with the footprint, scale and capabilities to deliver an industry leading value proposition for customers and employees, and the most significant innovations for the environment.
Substantial value is expected to be created for shareholders through the delivery of USD 180 million in pre-tax annual net cost synergies (2) , and a stronger financial profile going forward, including higher margins and cash flow and the potential for even stronger growth. Amcor intends to maintain a competitive, progressive dividend which is expected to increase over time and will have a strong investment grade balance sheet with immediate capacity for further investment or share buy backs.
The combination is unanimously recommended by the Boards of Directors of both companies.
Amcor CEO Ron Delia said: “Since announcing this transaction, we have made significant progress towards closure, and further important steps have been taken today with the finalisation of Board of Director and Senior Leadership appointments as well as shareholder documentation filings. As we approach the closing of the transaction, the opportunities to further strengthen our industry leading value proposition for customers, employees and the environment and to create value for shareholders are even clearer.”
Bemis President and CEO Bill Austen said: “We are one step closer to combining our two companies to create the global leader in consumer packaging. Bemis and Amcor are highly complementary organizations that each possess extraordinary talent, and we are confident that together, we will create an even stronger global enterprise that will benefit our shareholders, employees, and customers over the long term. This is the next exciting chapter for Bemis, and our teams will carry forward the Bemis legacy as they showcase their talents, knowledge, and passion for our customers and inspired packaging solutions.”
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(1) S-4 available under company filings for Amcor plc; has not yet been declared effective by the SEC.
(2) USD 180 million pre-tax annual net cost synergies are expected to be achieved by the end of the third year after completion of the transaction. Reflects cost synergies only and is incremental to benefits expected to be realised from the Bemis ‘Agility’ improvement plan. Further details about the net cost synergies and expected costs to achieve are set out in section 6.6 of the Scheme Booklet and in the “the Transaction’ section of the S-4.
