General Discussion, page-12

Warren Buffet once said that his favorite holding period for a stock was “forever.” Not many stocks meet this high standard, but global packaging giant, Amcor (ASX: AMC), may be one of them.
Virtually all products will require some sort of packaging. Amcor has innovated this field and makes both flexible and rigid packaging; the flexible packaging is often made from plastic, aluminum, and fiber-based materials, whilst the rigid packaging is formed of hot and cold tolerant polyethylene and glass.

Amcor expands capabilities through acquisition
06.06.2023
ZURICH — Packaging solutions company Amcor announced on May 8 that it signed a definitive agreement to acquire Moda Systems, a manufacturer of automated protein packaging machines.
Moda, which is based in New Zealand, designs, assembles and supports innovative, high-performance modular vacuum packing solutions for the meat, poultry and dairy industries. Amcor said the acquisition would complement the company’s strength in film, positioning the company to offer an end-to-end packaging solution that encompasses primary packaging, equipment, on-site technical services and parts.

“This acquisition will enable Amcor to offer an exciting new option and choice in automated protein packaging, making us the only flexible packaging manufacturer to own a high-speed, rotary equipment solution for fresh meat,” said Fred Stephan, president of Amcor Flexibles North America (AFNA). “Combined with our best-in-class film portfolio, we see great strategic value in adding Moda’s automation technology, and technical expertise and services for a range of customizable format solutions beyond a standard shrink bag. This transaction will enable Amcor to further enhance our winning value proposition for our global protein processing customers.”
Moda uses a rotary vacuum system to improve operational efficiencies for protein producers, enabling them to optimize labor, improve safety, and reduce waste. The system is designed for ease of use in connecting, operating, maintaining, and cleaning, and improves throughput and quality.
“Rising labor costs, employee attrition, and labor scarcity make automation a strategic imperative for fresh protein food processors,” said Scott Fallon, vice president and general manager of meat, poultry and seafood at AFNA. “This presents an opportunity for Amcor to create additional value through segment-focused automated packaging systems and solutions.”
With Amcor’s various meat, poultry, seafood, and cheese shrink packaging options, this new solution is expected to further enhance the value Amcor delivers to protein producers.
“We’re delighted to join forces with Amcor, an industry leader that shares our commitment to innovation and customer service and support,” said Richard Newcombe, founder and chief executive officer of Moda Systems. “Together, we will deliver innovative expertise at scale, with a mutual dedication to outperformance. Our complementary capabilities will accelerate Moda’s founding mission to offer the most advanced vacuum packaging solutions for our customers.”
The deal is subject to customary closing conditions and is expected to be completed in the June 2023 quarter.