Amcor sells factories in Russia

Rhea-AI Summary

Amcor has completed the sale of its three factories in Russia to HS Investments for €370 million, after obtaining necessary regulatory approvals. This move follows Amcor's strategy to divest its Russian operations while maintaining support for its employees and customers. The factories, located in St. Petersburg and Novgorod, accounted for approximately 2% of Amcor's total sales in fiscal 2022. The proceeds from this sale will primarily be directed towards debt repayment and share repurchases, with no material impact expected on Amcor's fiscal 2023 outlook.

Positive

• Completed sale of Russian factories for €370 million.
• Sale proceeds will be used for debt repayment and share repurchases.

Negative

• Factories represented approximately 2% of total sales in fiscal 2022.

ZURICH, Dec. 23, 2022 /PRNewswire/ -- Amcor (NYSE: AMCR; ASX: AMC) announced today it completed the sale of its three factories in Russia to HS Investments, a Russian-based investor, after receiving all necessary regulatory approvals and cash proceeds, including receipt of closing cash balances. The cash and debt free consideration value is €370 million.

This follows Amcor's previously announced decision to pursue the orderly sale of its Russian business while continuing to support its people and customers as well as preserving value for shareholders. 

The Russian business produces flexible and cartons packaging from one site in St. Petersburg and two sites in Novgorod and employs approximately 900 people. Amcor's three sites in Russia generated approximately 2% of total Amcor sales in fiscal 2022.

Cash proceeds are expected to be used primarily for debt repayment and share repurchases. The transaction is not expected to have a material impact on the outlook for fiscal 2023.

About Amcor

Amcor is a global leader in developing and producing responsible packaging solutions for food, beverage, pharmaceutical, medical, home and personal care, and other products. Amcor works with leading companies around the world to protect their products and the people who rely on them, differentiate brands, and improve supply chains through a range of flexible and rigid packaging, specialty cartons, closures, and services. The company is focused on making packaging that is increasingly lighter weight, recyclable and reusable, and made using an increasing amount of recycled content. In fiscal year 2022, 44,000 Amcor people generated $15 billion in annual sales from operations that span 220 locations in 43 countries. NYSE: AMCR; ASX: AMC
www.amcor.com I LinkedIn I Facebook I YouTube

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SOURCE Amcor

FAQ

What did Amcor announce on December 23, 2022?

Amcor announced the completion of the sale of its three factories in Russia for €370 million.

Who purchased Amcor's factories in Russia?

The factories were purchased by HS Investments, a Russian-based investor.

How much did Amcor receive from the sale of its Russian operations?

Amcor received €370 million from the sale of its three factories in Russia.

What percentage of Amcor's total sales did the Russian factories contribute?

The Russian factories contributed approximately 2% of Amcor's total sales in fiscal 2022.

What will Amcor use the proceeds from the Russian factory sale for?

Amcor plans to use the cash proceeds primarily for debt repayment and share repurchases.

Will the sale of factories in Russia impact Amcor's fiscal 2023 outlook?

The transaction is not expected to have a material impact on Amcor's fiscal 2023 outlook.