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Management Side
Australia's Amcor to buy U.S. rival Bemis for $5.25 billion

MELBOURNE, Australia & NEENAH, Wis. (From news reports and news releases) - Australian packaging company Amcor Ltd on Monday said it would acquire U.S. rival Bemis Co in an all-stock deal valuing the U.S. company at $5.25 billion.

Bemis shareholders would get 5.1 Amcor shares for each Bemis share, or $57.75, per share, resulting in Amcor shareholders owning approximately 71 percent and Bemis shareholders 29 percent of the new entity.

The deal is at a 12 percent premium to Bemis' last close at $51.53.

Amcor said it would establish a primary listing on the New York Stock Exchange with an estimated market capitalization of $17 billion, while maintaining its Australian listing.

The Australian company had requested a trading halt earlier on Monday to make an announcement on an acquisition, fuelling expectations of a bid after the Wall Street Journal reported Amcor is in advanced talks to buy Bemis.

Bemis' President and CEO, William F. Austen, said: "The combination of Bemis and Amcor is transformational, bringing together two highly complementary organizations to create a global leader in consumer packaging. We believe this combination, which is an exciting growth story for both companies, will benefit all stakeholders. Our employees will benefit as part of a larger and more global organization focused on a commitment to customer service, integrity and supporting strong teams. In addition, the combination will enable us to offer global, regional and local customers the most compelling value proposition in the industry through a broader product portfolio, increased product differentiation and enhanced operating capabilities, while leveraging Bemis' extensive U.S. manufacturing base and strengths in material science and innovation. Our shareholders will receive a significant premium in this transaction, reflecting the value we've built as an organization, as well as the opportunity to continue to participate in the upside potential of a more diversified combined company with greater scale and resources. We look forward to working together with Amcor to ensure a seamless integration."

Amcor's CEO, Ron Delia, said: "The strategic rationale for this combination and the financial benefits are highly compelling for both Amcor and Bemis shareholders. We are convinced this is the right deal at the right time for both companies, and with the right structure for both sets of shareholders to participate in a unique value creation opportunity. Amcor identified flexible packaging in the Americas as a key growth priority and this transaction delivers a step change in that region.

"There are an increasing number of opportunities arising for a leading packaging company to capitalize on shifting consumer needs, an evolving customer landscape and the need to provide responsible packaging solutions that protect the environment. With this transaction, Amcor will have a stronger value proposition with the scale, breadth and resources to unlock value from these opportunities, for the benefit of our shareholders, customers and employees.

"Amcor's financial profile will be enhanced, and our existing capital allocation framework, or shareholder value creation model, will be maintained and strengthened with this transaction. The combined company expects to have an investment grade balance sheet that provides immediate capacity for further disciplined investment as well as a compelling, progressive dividend. Amcor will draw on our extensive merger integration experience to deliver the substantial benefits of this combination."

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