Packaging giant Amcor to acquire Berry in $13b deal
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The news: Switzerland-based Amcor will acquire US-based Berry Global in an all-stock transaction valued at USD8.43 billion ($13 billion), turning the packaging giant into an even bigger force in the consumer and healthcare packaging markets.
The numbers: Berry shareholders will receive 7.25 Amcor shares for each Berry share, valuing Berry stock at USD73.59, a 9.75% premium over its last close.
The merged company, which will be named Amcor plc, is expected to have combined revenues of USD24 billion and adjusted EBITDA of USD4.3 billion.
The context: The merger, which has received unanimous board approval from both firms and is expected to close by mid-2025, aims to achieve USD650 million in synergies by the end of the third year. It will bolster Amcor's presence across 140 countries and over 400 facilities, reinforcing its strength in consumer and healthcare packaging, the company said in a statement.
Amcor CEO Peter Konieczny, who started the role in September, will lead the group, with Graeme Liebelt remaining as chairman. The group will maintain its primary listing on the NYSE, its secondary listing on the ASX and its global head office in Zurich.
UBS and Goldman Sachs are financial advisors to Amcor, with Kirkland & Ellis providing legal support. Lazard and Wells Fargo are advising Berry, backed by legal counsel from Skadden, Arps, Slate, Meagher & Flom LLP.
Completion of the deal is subject to shareholder and regulatory approvals.
What they said: “This combination delivers on our strategy to accelerate growth by putting the customer first, elevating the role of sustainability and orienting the portfolio toward faster growing, higher margin categories," Konieczny said.
"We will have a more complete and more sustainable product offering, supported by stronger innovation capabilities, global scale and supply chain flexibility. We will help global and local customers grow faster and operate more efficiently with a team of exceptional talent. This combination also drives a step change in annual free cash flow, earnings growth and value creation for our shareholders."
Berry CEO Kevin Kwilinski, said: “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.
"Importantly Berry and Amcor have aligned philosophies focused on safety, employee experience, sustainability, innovation, customer intimacy, and functional excellence. We will be better together, and I look forward to all we will achieve as a combined organization.”
The source: Amcor and Berry joint statement
