The €370m deal, announced earlier this year, includes a flexible and cartons packaging manufacturing plant in St. Petersburg and two sites in Novgorod
Amcor completes sale of three factories in Russia to HS Investments. (Credit: Amcor plc)
Packaging firm Amcor has completed the sale of its three factories in Russia to Russian investor HS Investments for a cash and debt-free consideration value of €370m.
The transaction was concluded after receiving all necessary regulatory approvals and cash proceeds, including receipt of closing cash balances.
The move comes after Amcor earlier indicated its intention to seek the orderly sale of its Russian operations while continuing to support its employees and clients and protecting shareholder value.
The Russian arm, which employs about 900 people, manufactures flexible and carton packaging at one location in St. Petersburg and two locations in Novgorod. In the fiscal year 2022, the three Amcor locations in Russia produced about 2% of all Amcor sales.
The primary projected uses of the cash generated are share repurchases and debt reduction. The projection for fiscal 2023 is not anticipated to be materially affected by the transaction, the packaging firm said.
Amcor produces responsible packaging solutions for food, beverage, pharmaceutical, medical, home and personal care, and other products.
It offers a range of flexible and rigid packaging, speciality cartons, closures, and services. The packaging products are lightweight recyclable and reusable and are made using recycled content.
The 590,000ft² packaging facility is claimed to be the largest flexible packaging plant by production capacity in China.
It will boost its capacity to satisfy customer demand throughout the Asia Pacific.