Amcor – adding growth

Amcor (AMC.ASX) acquired Sonoco’s North American rigid plastics operation for $280m. The acquisition will be EPS accretive by 2 – 3%.  Amcor management expects to save $20m+ in synergy benefits.

FY17 Amcor should generate revenue of USD$9.7b, EBIT USD$1.1b, EPS growth of 8% and DPS of USD$0.44, placing the stock on a forward yield of 3.8%

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We like AMC and see this as a suitable buy-write candidate for client portfolios. The stock trades ex-dividend tomorrow AUD$0.29.

Buy today and sell $17.00 calls into January.

AMC

 

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