Amcor and Berry Global Group have entered a definitive merger agreement to create a consumer packaging solutions entity through an all-stock transaction.
The combined entity focuses on providing innovative consumer packaging solutions, with a more sustainable product offering, and global scale and supply chain flexibility.
The $8.4bn deal is expected to create annual synergies of $650m.
Amcor will hold approximately 63% of the combined entity while Berry will own the remaining 37%.
The transaction, which values Berry's common stock at $73.59 per share, has been unanimously approved by both companies' boards of directors.
Berry shareholders will receive 7.25 Amcor shares for each Berry share held upon closing.
The transaction is expected to close in the middle of 2025, subject to shareholder and regulatory approvals and other customary closing conditions.
The combined company will offer a broader range of flexible film and converted film products, a scaled containers and closures business, and a global healthcare portfolio.
Amcor CEO Peter Konieczny 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.
“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 strategic benefits of this merger include a better business focus on high-growth, high-margin categories, and a global product offering that combines Amcor's and Berry's respective strengths in flexibles, containers, and closures.
The combined company will also strengthen the companies’ presence in categories such as healthcare, protein, pet food, liquids, beauty and personal care, and foodservice.
The merger combines material science expertise and specialised tooling, design, and multi-component assembly capabilities.
The combined company will have an annual R&D investment of $180m, approximately 1,500 R&D professionals, ten innovation centres worldwide, and more than 7,000 patents, registered designs, and trademarks.
It will have a presence in over 140 countries with around 400 production facilities.
The financial benefits of the merger include combined revenues of $24bn and adjusted EBITDA of $4.3bn, including run-rate synergies.
