Amcor and Berry Global (Berry) have announced they have entered into a definitive merger agreement, pursuant to which Amcor and Berry will combine in an all-stock transaction.
The combined entity will be named Amcor plc. Berry shareholders will reportedly receive a fixed exchange ratio of 7.25 Amcor shares for each Berry share held upon closing, resulting in Amcor and Berry shareholders owning approximately 63% and 37% of the combined company, respectively. The transaction has received unanimous approval of the boards of directors of both Amcor and Berry and values Berry’s common stock at $73.59 per share.
The combined company is expected to result in a broader flexible film and converted film offering for customers, a scaled containers and closures business, and a global healthcare portfolio. It is also said to be ‘uniquely positioned’ to accelerate growth, unlock portfolio transformation and deliver value to both sets of shareholders.
The merger aims to strengthen positions in categories including healthcare, pet food, beauty and personal care and food service. The companies say the move will deliver greater choice for customers and consumers with a portfolio of flexible container and closure solutions developed using a broader range of recycled materials, ‘next generation’ lightweighting technologies, reuse and recycle ready capabilities and differentiated high barrier paper-based formats.
Apparently, the merger will result in a combined R&D investment of $180 million per annum, with both companies planning to leverage corporate venturing partnerships to access new sustainability-minded solutions such as substrates, barriers, fibre and recycling, as well as digital solutions. Berry and Amcor both hope to optimize footprint servicing for customers in over 140 countries through production facilities and provide local access to global brands.
From a financial standpoint, the companies anticipate a combined annual cash flow of over $3 billion, and a $650 million benefit from identified cost, growth and financial synergies by end of third year, as well as over 35% adjusted cash EPS accretion and expected double-digit return on investment.
Closing of the transaction is expected in the middle of the 2025 calendar year, subject to shareholder approvals, regulatory approvals, and other customary closing conditions.
Peter Konieczny will serve as chief executive officer, Graeme Liebelt will serve as chairman and Stephen Sterrett will serve as deputy chairman of the combined company. Amcor 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 presence in Evansville, Indiana. Upon completion of the transaction, Amcor’s board of directors will expand to 11 directors, 4 of whom will be nominated by Berry.
In similar news, Smurfit Kappa and WestRock’s merger to create Smurfit Westrock entered the New York and London Stock Exchanges in July. Talks of a potential merger first arose in September 2023, with both companies’ Boards of Directors consenting to the merger and confirming an agreement soon after.
More recently, shareholders from both companies approved International Paper’s acquisition of DS Smith, with the combination still expected to close in Q4 2024. Mondi originally expressed interest in acquiring DS Smith in February 2024; the merger was expected to exceed €11.5 billion in value and result in an ‘industry leader’ for paper packaging in Europe.
If you liked this story, you might also enjoy:
The ultimate guide to the Packaging and Packaging Waste Regulation in 2024
How are the top brands progressing on packaging sustainability?
Sustainable Innovation Report 2024: Current trends and future priorities
Everything you need to know about global plastic sustainability regulation
No comments yet