Amcor announces demerger with packaging distribution business

Amcor has announced it will demerge its Australasia and Packaging Distribution (AAPD) business. Amcor’s directors say the demerger will enhance shareholder value by enabling each company to better pursue its 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 Managing Director 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.”

Amcor has invested more than $1 billion in AAPD in the past six years, including a new recycled paper mill in Botany, a new furnace at the Gawler glass bottle plant and a new beverage can line in New Zealand.

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 managing director 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. Both Amcor and the new company will be listed on the Australian Securities Exchange.

The demerger is expected to be completed in December 2013.