Amcor has announced it will sell its 50% interest in Bericap North America (BCNA) for $122 million. The transaction, expected to close by December 31, 2024, will result in proceeds being used to reduce Amcor’s debt. The move will not impact the company’s financial outlook for fiscal 2025, as the sale is not anticipated to significantly affect interest expenses.
BCNA, a joint venture between Amcor Rigid Packaging and Germany’s Bericap, was established in 1997 and manufactures closures for the beverage, food, and industrial markets across the U.S., Canada, and Mexico. In fiscal 2024, the joint venture reported total sales of approximately $190 million and an adjusted EBIT of around $19 million, with an adjusted net income of about $8 million, all of which were fully consolidated under Amcor’s Rigid Packaging division.
Peter Konieczny, CEO of Amcor, stated, “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.” He added, “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 wish them well for the future.”
The sale marks a strategic shift for Amcor, which will continue to focus on its broader portfolio within the packaging sector.