Amcor directors are of the view that the demerger will enhance shareholder value by enabling each company to better pursue their own growth agendas and strategic priorities.
“To be a successful market leader, that delivers continuous improvement in customer value, a company must be focused in terms of product portfolio and end markets,” said Amcor CEO and MD, Ken MacKenzie. “Although Amcor and AAPD are both packaging companies, they are actually very different in terms of product segments and geographic focus. Amcor has global leadership positions in the flexibles and rigid plastics segments, while AAPD operates in the fibre, glass and beverage can packaging markets in Australasia, and packaging distribution in North America and Australia.
“Over the past six years, Amcor has invested significantly in AAPD to improve its manufacturing capabilities and ensure it is well positioned for growth. These investments have been in excess of $1bn over that period and include the new recycled paper mill at Botany, a new furnace at the glass bottle plant at Gawler and a new beverage can line in New Zealand. AAPD will continue to benefit from these initiatives in terms of earnings and cash flow.”
Following the demerger, each company will have its own experienced management team and board. For Amcor, Graeme Liebelt will be the chairman, and Ken MacKenzie will remain the MD and CEO.
For the new company, which is yet to be named, Chris Roberts will become the chairman, and Nigel Garrard, the current president of AAPD, will be appointed CEO.
John Pizzey and Jeremy Sutcliffe will also join the board of the new company. Chris Roberts and John Pizzey will retire from the Amcor board upon implementation of the demerger and Jeremy Sutcliffe will continue as a director of Amcor.
Amcor and the new company will be listed on the Australian Securities Exchange.
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