Amcor today announced the sale of its Australian envelope manufacturing business, Amcor Envelopes to envotec Pty Ltd.
The sale price of $21 million exceeds the book value of the business. Annual sales are $35 million./p>
Amcor Envelopes, which is part of Amcor Printing Papers Group, trades under the names Envelope Manufacturers and Celpac.
Amcor's Managing Director, Russell Jones said:
"The sale is part of Amcor's continuing program of divesting non-core businesses.
"Proceeds from the sale and other divestments this financial year now exceed $500 million.
"The proceeds of this latest sale will further strengthen Amcor's already sound financial position."
The sale includes Amcor Envelopes' manufacturing plants in Melbourne and Sydney and sales offices in Melbourne, Sydney, Brisbane and Canberra.
The majority of the paper used in manufacturing the envelopes is supplied by Amcor's Australian Paper division. The transaction includes a long-term contract for Amcor to supply envelope paper and corrugated boxes. envotec Pty Ltd (previously Rexam) already manufactures envelopes in Australia.
All necessary regulatory approvals have been obtained and settlement is scheduled for May 28, 1999.