Amcor to split off glass packaging, drink can units

Australia’s Amcor Ltd., one of the world’s largest packaging suppliers, has announced plans to sell its glass and beverage can packaging unit – called Australasia and Packaging Distribution (AAPD) – a business valued at around US$1.4 billion, so that it can better focus on its core global business of plastics packaging.

The spin-off is slated for December.

According to Amcor, it had businesses with very different product and geographical segments, with the plastics packaging business deriving 95 percent of its sales outside Australia. “Although Amcor and AAPD are both packaging companies they are actually very different in terms of product segments and geographic focus,” CEO Ken Mackenzie said in a statement. “Amcor has global leadership positions in the flexibles and rigid plastics segments, while AAPD operates in the fiber, glass and beverage can packaging markets in Australasia and packaging distribution in North America and Australia.”

In contrast, AAPD, garners two thirds of its earnings from Australia and New Zealand. It accounted for about 15 per cent of the company’s profits before interest and tax last financial year, Amcor said.