Packaging company Amcor has entered into an agreement to sell its 50% interest in the Bericap North America (BCNA) joint venture (JV) for $122m.
BCNA was established by its equal JV partners Amcor Rigid Packaging and Germany-based Bericap in 1997.
The JV operates three facilities across the US, Canada, and Mexico, producing closures for various markets such as food and beverage.
In fiscal year 2024 (FY24), BCNA reported sales of approximately $190m and adjusted earnings before interest and taxes of approximately $19m, both fully consolidated within Amcor’s Rigid Packaging division.
Amcor’s adjusted net income attributable to the JV stood at approximately $8m.
The transaction is expected to close by 31 December 2024, with no significant impact on Amcor’s FY25 financial outlook.
The cash proceeds from the sale will be utilised to lower Amcor’s debt.
Amcor CEO Peter Konieczny 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.”
Last month, Amcor reported a 9% reduction in absolute greenhouse gas emissions for 2024.
