US: Amcor and Bemis announce asset sale for US antitrust clearance

Amcor Limited and Bemis Company announced they are in advanced discussions with staff of the Antitrust Division of the US Department of Justice (DOJ) to resolve certain specific antitrust concerns raised in the US associated with the proposed combination of Amcor and Bemis.

In order to resolve these concerns, Amcor has now entered into a binding agreement with Tekni-Plex for the sale of Amcor plants in Milwaukee (WI), Ashland (MA), and part of the Madison (WI) plant, for cash consideration of US$215 million. Combined these operations generate annual sales revenue from the sale of flexible packaging for certain healthcare packaging products of approximately US$100 million.

The sale of these operations to Tekni-Plex remains subject to approval and consent (including approval by the DOJ of Tekni-Plex as the buyer), and filing of a final judgement by the DOJ. Once this occurs, all antitrust clearances which are conditional to closing will have been completed. Completion of the transaction is expected on May 15, 2019.

Total remedies required by the European Commission and DOJ represent an immaterial proportion of the total sales for the combined company.