Amcor and Bemis Announce Asset Sale Associated With US Antitrust Clearance
In order to resolve U.S. antitrust concerns, Amcor has now entered into a binding agreement with Tekni-Plex, Inc (Tekni-Plex), for the sale of Amcor plants in Milwaukee (WI), Ashland (MA) and part of the Madison (WI) plant.
April 22, 2019 - Amcor Limited and Bemis Company, Inc. as previously announced are in advanced discussions with Staff of the Antitrust Division of the US Department of Justice (DOJ) to resolve certain specific antitrust concerns raised in the US associated with the proposed combination of Amcor and Bemis. In order to resolve these concerns, Amcor has now entered into a binding agreement with Tekni-Plex, Inc (Tekni-Plex), for the sale of Amcor plants in Milwaukee (WI), Ashland (MA) and part of the Madison (WI) plant, for cash consideration of USD 215 million. Combined these operations generate annual sales revenue from the sale of flexible packaging for certain healthcare packaging products of approximately USD 100 million. The sale of these operations to Tekni-Plex remains subject to approval and consent (including approval by the DOJ of Tekni-Plex as the buyer), and filing of a final judgement by the DOJ. Once this occurs, all antitrust clearances which are conditional to closing will have been completed. As previously announced, completion of the transaction is expected on 15th May 2019. Total remedies required by the European Commission and DOJ represent an immaterial proportion of the total sales for the combined company and do not impact the USD 180 million of net cost synergies expected to be delivered by the end of the third year following completion. SOURCE: Bemis Company |