M&As: Amcor/Berry to combine in US$8 bn deal creating packaging solutions giant
Amcor plc and US packaging peer Berry Global Group have entered into a definitive merger agreement, pursuant to which Amcor and Berry will combine in an all-stock transaction in a US$8.4 billion deal creating a consumer and healthcare packaging giant with combined revenues of US$24 billion.
The transaction has received unanimous approval of the boards of directors of both Amcor and Berry and values Berry’s common stock at US$73.59 per share.
The combination brings together two highly complementary businesses to create a global leader in consumer packaging solutions, with a broader flexible film and converted film offering for customers, a scaled containers and closures business and a global healthcare portfolio.
Amcor and Berry make cartons, closures and containers for food, beverage, pharmaceutical, medical, home and personal-care, industries, and will have footprint across more than 140 countries.
Berry CEO, Kevin Kwilinski, added, “Over the past year, Berry has undergone a significant transformation, completing the spin-off of our HHNF business, enhancing our product mix and optimising our portfolio. Our combination with Amcor is a logical next step in our company’s evolution.”
The deal is by far Amcor's largest acquisition to date. In 2019, it bought US rival Bemis in a US$5.25 billion all-stock deal but had to divest three manufacturing facilities to gain approval from the US Justice Department.
The combined entity will be named Amcor Plc, with a primary listing on the NYSE. The transaction, which will result in Amcor holding 63% in the combined entity, has been unanimously approved by the boards of both companies. Closing is targeted in the middle of calendar year 2025, subject to shareholder approvals, regulatory approvals, and satisfaction of other customary closing conditions.
The transaction is expected to result in synergies of about US$650 million by the end of the third year after the closing of the deal.
The combined company will be a technology driven innovation leader with more capabilities and significantly higher capacity to invest in solving technical challenges with combined R&D investment of US$180 million per annum, ~1,500 R&D professionals, 10 innovation centres worldwide and 7,000+ patents, registered designs, and trademarks
The company will also enhance capabilities by leveraging corporate venturing partnerships to access new and groundbreaking sustainability solutions (substrates, barrier, fibre and recycling), digital solutions and disruptive ideas in adjacent businesses and technologies
It will also optimise footprint servicing customers in 140+ countries through ~400 production facilities, bringing global capabilities to local customers and provide local access and expertise to global brands
It will have combined revenues of US$24 billion and adjusted EBITDA of US$4.3 billion, including run-rate synergies
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