Orora Limited (ASX:ORA) Completes Sale of North American Packaging Business
Transaction Overview
Orora Limited (ASX:ORA) has successfully completed the sale of its North American packaging solutions business (OPS) to Veritiv Corporation. The enterprise value of the transaction is A$1.775 billion, with net proceeds expected to be approximately A$1.7 billion after tax and costs.
Use of Proceeds
The net proceeds will primarily be allocated to repaying debt facilities and investing in an organic expansion of cans capacity at Rocklea, Queensland. Additionally, Orora plans to initiate a share buyback program with up to 10% of the shares on issue, valued at around A$320 million, beginning no earlier than 24 December.
Executive Comments
Brian Lowe, Managing Director and CEO of Orora, stated, “Today marks a significant milestone for Orora – completing the sale of OPS is a critical step forward in our strategy to become a specialised packaging provider for the beverage industry.” He emphasized that the transaction enhances Orora’s balance sheet and allows for focused capital management initiatives including the share buyback and strategic investments for growth.
This announcement is authorized for release to the ASX by the Board of Directors of Orora.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Orora. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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