Amcor (ASX:AMC), a leader in responsible packaging solutions, has signed an agreement to sell its 50% stake in Bericap North America for US$122 million ($185.4 million).
Formed as a joint venture between Amcor Rigid Packaging and Germany-based Bericap in 1997, BCNA manufactures closures for the beverage, food, and industrial sectors across three facilities in the US, Canada, and Mexico.
Amcor's share of the adjusted net income was approximately $8 million.
Proceeds from the transaction, expected to close by Dec. 31, will be used to reduce debt. The sale is not anticipated to impact Amcor's FY25 financial outlook.
Amcor CEO Peter Konieczny stated, "We've had a longstanding partnership with Bericap over the past 27 years. However, differing views on near-term capital requirements have led us to unwind the joint venture. While closures remain a category of interest for us, we are committed to disciplined capital allocation."
For the first quarter of FY25 ended Sept. 30, the company reported net sales of US$3.35 billion ($5.09 billion), with a GAAP net income of US$191 million ($290.3 million) and a GAAP diluted earnings per share of 13.2 US cents.
Adjusted EBIT stood at US$365 million ($554.8 million), up 3% on a comparable constant currency basis.
The company reaffirmed its FY25 outlook, projecting adjusted EPS between 72-76 cents per share and an adjusted free cash flow of US$900 million to $1 billion ($1.37-$1.52 billion).
"Amcor started fiscal 2025 well, with volume growth and customer demand dynamics continuing to improve," stated Peter Konieczny, Amcor CEO.
The quarterly dividend saw an increase, now at 12.75 US cents per share, reflecting the company's confidence in its financial stability and future growth.