November 19, 2024 16:47

Amcor and Berry Global, two of the world's leading producers of plastic packaging, have decided to merge in an all-stock transaction. According to the agreement announced today, Berry shareholders will receive 7.25 Amcor shares for each share they own upon closing. The transaction has received unanimous approval from the boards of directors of both Amcor and Berry and values Berry’s common stock at $73.59 per share.

Following the transaction, the newly formed company, named Amcor, will be owned 63% by Amcor shareholders and 37% by Berry's existing shareholders.

The new Amcor will emerge as a key player in consumer goods packaging, with operations spanning flexible films, rigid containers and closures, as well as a robust portfolio in healthcare packaging. The company will operate more than 400 facilities across 140 countries, generating approximately $24 billion in revenue and an adjusted EBITDA of $4.3 billion.

The merger is expected to generate $650 million in annual synergies within the first three years. Research and development activities will also gain a significant boost, with combined resources of $180 million annually, 10 R&D centers, 1,500 professionals and a portfolio of more than 7,000 patents.

Upon completion of the transaction, Amcor’s board of directors will expand to 11 members, four of whom will be nominated by Berry.
Peter Konieczny (pictured) will serve as chief executive officer, Graeme Liebelt will serve as chairman, and Stephen Sterrett will serve as deputy chairman of the combined company. The company will maintain its primary listing on the NYSE and its secondary listing on the ASX.

The global head office will remain in Zurich, Switzerland. The combined company expects to maintain a significant presence in Evansville, Indiana.

The transaction is expected to close by mid-2025, subject to shareholder and regulatory approvals.

Recently, Berry Global announced the spin-off and subsequent merger of its Health, Hygiene and Specialties Global Nonwovens and Films (HHNF) division with Glatfelter, forming the new entity Magnera. The newly created company operates 46 facilities specializing in polymer- and cellulose-based solutions, including absorbent hygiene products, protective apparel, wipes, specialty building materials and products for the food and beverage industry.

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