Amcor Liquidates its 50% Stake in BCNA JV for $122 Million

Amcor AMCR has sold its 50% stake in Bericap North America (“BCNA”) for $122 million. It plans to use the money to reduce debt.BCNA, founded in 1997, is a 50/50 joint venture (JV) between Amcor Rigid Packaging and Germany-based Bericap. It manufactures closures for the beverage, food and industrial end industries in three plants in the United States, Canada and Mexico.While Amcor continues to operate in the closures market as a category of interest, it is committed to maintaining its conservative capital allocation approach. The JV’s total sales in fiscal 2024 were approximately $190 million, with adjusted EBIT of roughly $19 million. Both were previously fully consolidated under Amcor's Rigid Packaging business. Adjusted net income attributable to Amcor was roughly $8 million. The transaction is not expected to have an impact on Amcor's fiscal 2025 financial projection, except the resulting reduction in interest expense.Amcor expects adjusted earnings per share for fiscal 2025 to be 72-76 cents. The company projects an adjusted free cash flow of $900-$1,000 million for fiscal 2025.AMCR Stock’s Price PerformanceShares of Amcor have lost 3.1% over the past year against an 11.9% rise of its industry.Image Source: Zacks Investment ResearchAmcor’s Zacks Rank & Key PicksAmcor currently carries a Zacks Rank #4 (Sell).Better-ranked stocks in the Industrial Products space include Applied Industrial Technologies Inc. AIT, Atmus Filtration Technologies Inc. ATMU and Gates Industrial Corporation plc GTES. Applied Industrial Technologies currently has a Zacks Rank #2 (Buy). AIT beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 4.9%. The company's shares have soared 38.2% in the past year. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.Atmus Filtration, which currently carries a Zacks Rank #2, beat the consensus estimate in each of the trailing four quarters. In this time frame, it has delivered an earnings surprise of roughly 13.8%, on average. NGD’s shares have rallied 64.9% over the past year. Gates Industrial, which currently has a Zacks Rank #2, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 11.8%. GTES has gained around 52% in the past year. Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report Gates Industrial Corporation PLC (GTES): Free Stock Analysis Report Amcor PLC (AMCR): Free Stock Analysis Report Atmus Filtration Technologies Inc. (ATMU): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks