Amcor spins-off its Australasia business
01 Aug 2013
Australian packaging major Amcor Ltd today announced its plans to split its Australia and New Zealand packaging operations and global distribution business into two separate companies.
Amcor believes the demerger of its Australasia and Packaging Distribution (AAPD) business will enhance the company's shareholder value by enabling each company to better pursue their own growth agenda and strategic priorities.
Amcor CEO and managing director Ken MacKenzie said, ''To be a successful market leader, that delivers continuous improvement in customer value, a company must be focused in terms of product portfolio and end markets.''
He also added that though Amcor and AAPD are both packaging companies, they are actually very different in terms of product segments and geographic focus.
''Amcor has global leadership positions in the flexible and rigid plastics segments, while AAPD operates in the fiber, glass and beverage can packaging markets in Australasia and packaging distribution in North America and Australia,'' MacKenzie said.
"By abandoning some market segments, reducing and expanding workforces in some areas and closing various manufacturing facilities, transforming agendas were in work, as now is the time," he said.
The demerger is intended to be implemented though a capital reduction and Scheme of Arrangement.
Chris Roberts will be made chairman of the demerged AAPD business and Nigel Garrard, the president of AAPD, will be made chief executive, while Amcor director Graeme Liebelt will be appointed chairman of the new Amcor.
Amcor expects completion of the demerger in December 2013, subject to shareholder, court and other approvals.
AAPD has 26 large-scale plants, employing about 5,000 workers. Two-thirds of its sales are generated in Australasia and one-third from North America.
The company made a pre-tax loss of $36.8 million in the first half of the 2012-13. The result for AAPD included a $119.6 million before tax charge from restructuring expenses, which included $86.1 million of asset value writedowns.
