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  "documentTitle": "Amcor plc (pro forma Amcor-Berry Global combination) (AMCR)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2020-03-10 00:00:00",
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  "notes": "Includes a direct quote from an analyst-CEO exchange regarding working capital optimization.",
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      "text": "Spruce Point believes that Bemis had much worse working capital than Amcor, and not simply 2x Amcor's as suggested by an analyst. Over the preceding, six quarters prior to deal closing, we calculate Bemis' working capital to sales ratio averaged 13%. Amcor's working capital was around zero.",
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      "text": "Working Capital % of LTM Sales: 14.1%",
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      "text": "Spruce Point believes that Bemis had much worse working capital than Amcor, and not simply 2x Amcor's as suggested by an analyst. Over the preceding, six quarters prior to deal closing, we calculate Bemis' working capital to sales ratio averaged 13%. Amcor's working capital was around zero.",
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      "kind": "quote",
      "text": "Gandler: \"Okay, great. And last question. Bemis' working capital to sales is twice Amcor's, roughly twice Amcor's. Is there something structural there or is that an opportunity you guys have identified as well?\" CEO Delia: \"I would say it's an opportunity we've identified as well.... Look, is it going to get to our level? I don't know. But what we see without question, without hesitation is the cash synergy opportunity from optimising working capital.\"",
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      "kind": "quote",
      "text": "Gandler: \"Okay, great. And last question. Bemis' working capital to sales is twice Amcor's, roughly twice Amcor's. Is there something structural there or is that an opportunity you guys have identified as well?\" CEO Delia: \"I would say it's an opportunity we've identified as well.... Look, is it going to get to our level? I don't know. But what we see without question, without hesitation there is the cash synergy opportunity from optimising working capital.\" — Analyst Gandler and CEO Delia",
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      "text": "Source: Amcor and Bemis financials, Spruce Point analysis",
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      "kind": "title",
      "text": "Working Capital Deterioration: Part I",
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