Amcor, Berry to Merge in All-Stock Transaction
Amcor plc and Berry Global Group have entered a definitive merger agreement to combine companies via an all-stock transaction, and the merger will reshape the competitive landscape of the package manufacturing market.
Amcor CEO Peter Konieczny will be CEO of the combined company. | Credit: Amcor
By combining their resources and expertise, Amcor and Berry will be better positioned to offer a more comprehensive and sustainable product portfolio. This enhanced capability will allow the new entity to meet customers’ evolving demands more effectively by providing innovative solutions that address performance and environmental concerns.
The increased scale and global reach will also enable the combined company to compete more aggressively globally, offering local expertise with international capabilities. We can expect this strategic advantage to attract new business and strengthen relationships with existing customers.
The boards of directors of both Amcor and Berry have unanimously approved the transaction, which values Berry’s common stock at $73.59 per share. The merger is expected to close in mid-2025, subject to shareholder and regulatory approvals and other customary closing conditions.
Expanded Capabilities on a Global Scale
Upon completion of the merger agreement, the new entity will have increased capabilities and a higher capacity to tackle technical challenges. With a combined R&D investment of $180 million annually, approximately 1,500 R&D professionals, 10 innovation centers worldwide, and more than 7,000 patents, registered designs, and trademarks. Furthermore, the merger will create a company with a footprint in more than 140 countries, supported by approximately 400 production facilities.
Amcor will maintain its primary listing on the NYSE and its secondary listing on the ASX. The combined entity will be named Amcor plc. | Credit: Amcor
The expanded footprint will significantly enhance the combined company’s position in high-growth, high-value categories such as healthcare, protein, pet food, liquids, beauty, personal care, and food service.
Amcor will maintain its primary listing on the NYSE and its secondary listing on the ASX. The combined entity will be named Amcor plc, with its global head office remaining in Zurich, Switzerland, and a significant presence in Evansville, Indiana.
Financial Strength and Shareholder Value
The transaction is projected to deliver significant financial benefits, including $650 million in annual earnings synergies and more than 35% adjusted cash EPS accretion. Berry shareholders will receive a fixed exchange ratio of 7.25 Amcor shares for each Berry share held, resulting in Amcor and Berry shareholders owning approximately 63% and 37% of the combined company, respectively.
In a written statement, Amcor CEO Peter Konieczny, who will continue to serve as CEO of the combined company, emphasized the strategic benefits of the planned merger, stating, “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. 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. As a result, this combination also drives a step change in annual free cash flow, earnings growth and value creation for our shareholders. I, and the Amcor team, look forward to joining with Berry to accelerate change and real impact for our customers and their consumers.”
The combined company is expected to deliver enhanced long-term shareholder value creation through sustained higher expected earnings growth from 10-15% to 13-18% per annum.
The board of directors will expand to 11 members, with four directors nominated by Berry. Graeme Liebelt is expected to serve as chairman, and Stephen Sterrett as deputy chairman.
Read the complete announcement at Amcor and Berry Announce Merger Agreement.
As editor-in-chief of Packaging Impressions — the leading publication and online content provider for the printed packaging markets — Linda Casey leverages her experience in the packaging, branding, marketing, and printing industries to deliver content that label and package printers can use to improve their businesses and operations.
Prior to her role at Packaging Impressions, Casey was editor-in-chief of BXP: Brand Experience magazine, which celebrated brand design as a strategic business competence. Her body of work includes deep explorations into a range of branding, business, packaging, and printing topics.
Casey’s other passion, communications, has landed her on the staffs of a multitude of print publications, including Package Design, Converting, Packaging Digest, Instant & Small Commercial Printer, High Volume Printing, BXP: Brand Experience magazine, and more. Casey started her career more than three decades ago as news director for WJAM, a youth-oriented music-and-news counterpart to WGCI and part of the Chicago-based station’s AM band presence.
