Amcor Bemis Combine $6.8 Billion deal - Arhive
Amcor and Bemis to Combine in $6.8 Billion deal Amcor Bemis Combine $6.8 Billion deal
Amcor Limited and Bemis Company, Inc. have today announced that their respective boards of directors have unanimously approved a definitive agreement under which Amcor will acquire Bemis in an all-stock combination.
Combining these two complementary companies will create the global leader in consumer packaging, with the footprint, scale and capabilities to drive significant value for shareholders, offer customers and employees the most compelling value proposition in the packaging industry and deliver the most sustainable innovations for the environment.
The transaction will be effected at a fixed exchange ratio of 5.1 Amcor shares for each Bemis share, resulting in Amcor and Bemis shareholders owning approximately 71% and 29% of the combined company, respectively.Amcor Bemis Combine $6.8 Billion deal
This is equivalent to a transaction price of US$57.75 per Bemis share based on Amcor’s closing share price of A$15.28(4) on August 3, 2018, and represents a premium of 25% to Bemis’ closing price of US$46.31 per share as of August 2, 2018(5).
Amcor’s CEO, Ron Delia, said: “The strategic rationale for this combination and the financial benefits are highly compelling for both Amcor and Bemis shareholders. We are convinced this is the right deal at the right time for both companies, and with the right structure for both sets of shareholders to participate in a unique value creation opportunity.Amcor Bemis Combine $6.8 Billion deal
Amcor identified flexible packaging in the Americas as a key growth priority and this transaction delivers a step change in that region.Amcor Bemis Combine $6.8 Billion deal
“There are an increasing number of opportunities arising for a leading packaging company to capitalise on shifting consumer needs, an evolving customer landscape and the need to provide responsible packaging solutions that protect the environment.
With this transaction, Amcor will have a stronger value proposition with the scale, breadth and resources to unlock value from these opportunities, for the benefit of our shareholders, customers and employees.Amcor Bemis Combine $6.8 Billion deal
”Amcor’s financial profile will be enhanced, and our existing capital allocation framework, or shareholder value creation model, will be maintained and strengthened with this transaction.Amcor Bemis Combine $6.8 Billion deal
The combined company expects to have an investment grade balance sheet that provides immediate capacity for further disciplined investment as well as a compelling, progressive dividend.Amcor Bemis Combine $6.8 Billion deal
Amcor will draw on our extensive merger integration experience to deliver the substantial benefits of this combination.”Amcor Bemis Combine $6.8 Billion deal
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