Ancora Releases Amcor Nvestment Thesis Presented At The Annual Bloomberg Activism Forum; Says "Combination Of Amcor And Berry Global Creates A Compelling Investment Opportunity, With 50%-70% In Potential Upside As Synergies Are Realized And Valuation Re-Rates"
Combination of Amcor and Berry Global Creates a Compelling Investment Opportunity, With 50%-70% in Potential Upside as Synergies are Realized and Valuation Re-Rates
Ancora Holdings Group LLC (collectively with its affiliates, "Ancora") today released its positive investment thesis on Amcor plc (NYSE:AMCR, ASX: AMC))) ("Amcor") that was presented at the Bloomberg Activism Forum by James Chadwick, President of Ancora Alternatives LLC. This follows Amcor's recently announced merger with Berry Global Group, Inc. (NYSE:BERY) ("Berry"), which the companies expect to close in the middle of next year.1 The presentation can be accessed here.
Key points from the presentation:2
- The combined entity stands to be a premium packaging company with a durable free cash flow profile and a conservatively estimated $650 million in synergies, at what we believe is a significantly discounted valuation.
- The combination creates a compelling investment opportunity with 50% to 70% upside, underpinned by Ancora's strong conviction that the announced synergies are conservative.
- On a proforma basis, Ancora estimates the combined entity's EBITDA could be $4.5 billion and its shares could rise from ~$10 today to ~$16 in the coming years.
