Packaging giants Amcor and US-based Berry Global unite in $13bn deal
Amcor will acquire Berry Global in a $13bn all-stock deal, creating a packaging powerhouse with $37bn in revenues.
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Amcor will buy US-based Berry Global in a $US8.43bn ($13bn) all-stock deal that will create a powerhouse in the consumer and healthcare packaging markets.
The two companies announced overnight on Tuesday that they have entered into a definitive merger agreement.
Berry shareholders will receive a fixed exchange ratio of 7.25 Amcor shares for each New York Stock Exchange-listed Berry share held upon closing, resulting in Amcor and Berry shareholders owning approximately 63 per cent and 37 per cent 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 $US73.59 per share,” the companies said in a joint statement.
The merged group, which will have combined revenues of $US24bn ($37bn), has identified $US650m in annual cost, growth and financial synergies by the end of the third year.
Amcor CEO Peter Konieczny said the deal will deliver on the company’s strategy to accelerate growth.
“We will have a more complete and more sustainable product offering, supported by stronger innovation capabilities, global scale and supply chain flexibility,” said Mr Konieczny, who was appointed CEO in September. “We will help global and local customers grow faster and operate more efficiently with a team of exceptional talent.”
Amcor, which trades on the NYSE and ASX, was founded in Melbourne in the 1860s.
Mr Konieczny will serve as CEO of the merged group to be known as Amcor plc, with Graeme Liebelt as chairman and Stephen Sterrett as deputy chairman.
The company will have its primary listing on the NYSE and its secondary listing on the ASX.
Mr Konieczny said the deal would drive a step change in annual free cash flow, earnings growth and valuation creation for Amcor shareholders.
The combined business will have adjusted earnings before interest, tax, depreciation and amortisation of $US4.3bn, more than 35 per cent adjusted cash EPS accretion and expected double-digit return on investment.
Additionally, Amcor and Berry have flagged the deal will deliver higher expected earnings growth from 10-15 per cent to 13-18 per cent per annum.
Berry CEO Kevin Kwilinski said his company had undergone a significant transformation over the past year.
“Our combination with Amcor is a logical next step in our company’s evolution, and it is a testament to our entire team that we’re well positioned to build on this momentum and deliver even more value to our shareholders,” Mr Kwilinksi said.
The deal will give Amcor plc a footprint across 140 countries and strengthen its position in high-growth, high-value categories including healthcare, protein, pet food, liquids, food service and beauty and personal care.
The merger is expected to be finalised by mid 2025, subject to shareholder approvals,
regulatory approvals and other conditions.
Originally published as Packaging giants Amcor and US-based Berry Global unite in $13bn deal
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