CZECH REPUBLIC – Swiss-based global packaging company Amcor has completed the acquisition of closed the acquisition of flexible packaging plant located in the Czech Republic.

Commissioned as a greenfield by DG Pack in 2019, the plant is fitted with advanced, specialized equipment to allow it to serve various segments, including coffee and pet food.

In addition, the purchased land and buildings offer the capacity to expand the facility’s operations and establish a production hub at the site.

The strategically located site will allow Amcor to expand its capacity to serve high demand and customer growth across its flexible packaging network in Europe.

Michael Zacka, President, Amcor Flexibles Europe, Middle East & Africa said: “With this acquisition, we are investing to accelerate the organic growth momentum of our flexibles business in Europe in attractive segments.

 “The scalable nature of the acquired site and its attractive location further bolsters our ability to service strong customer demand and generate strong returns for Amcor shareholders.”

The acquisition follows the company’s recent report of its fourth-quarter fiscal 2022 (ended Jun 30, 2022).

The company reported adjusted earnings per share (EPS) of 24 cents, which came in line with the Zacks Consensus Estimate.

The bottom line increased 4% year over. Total revenues increased 13% year over year to US$3,909 million in the reported quarter and beat the Zacks Consensus Estimate of US$3,815 million.

Amcor expects adjusted EPS growth of approximately 3-8% on a comparable constant currency basis in fiscal 2023, comprising approximately 5-10% growth from the underlying business performance and a benefit of approximately 2% from share repurchases.

EPS is expected to be in the range of 80-84 cents. Amcor projects adjusted free cash flow of around US$1- US$1.1 billion.

In fiscal 2023, the company estimates a negative impact of approximately 2% related to the planned sale of its three plants in Russia and an unfavorable impact of approximately 2% pertaining to a stronger US dollar.

The company also announced plans to sell its three facilities in Russia following Moscow’s invasion of Ukraine, which has complicated doing business there.

This move is in line with the company’s previous announcement to scale down activities and explore ‘strategic options’ for its Russian operations.

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