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Amcor plc AMCR announced that its previously announced merger deal with Berry Global Group, Inc. BERY has cleared another significant step with the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR Act). Necessary approvals have been received from regulatory authorities in recent weeks, which included antitrust clearances from China and Brazil.
Earlier this month, Amcor announced that the shareholders of both companies have approved the combination. The AMCR-BERY deal is expected to close in mid-2025, subject to some other closing conditions.
AMCR & BERY to Form Consumer & Healthcare Packaging Leader
In November 2024, Amcor announced that it had entered a definitive merger agreement with Berry Global. It will create a global leader in consumer packaging solutions with remarkable innovation capabilities and scale.
The deal will bring together two highly complementary businesses, combining Amcor's global flexibles and regional containers businesses with Berry Global's regional flexibles and global containers and closures businesses.
Customers will get a broader, flexible film and converted film offering, as well as more sustainable solutions that promote circularity and reduce carbon footprint. Flexibles will account for around 60%. The merged company will have a scaled containers and closures business (around 40%) and a unique global healthcare portfolio.
The combined entity will have a strengthened position in high-growth, high-value categories, including Healthcare, Protein, Pet Food, Liquids, Beauty & Personal Care and Food Service.
Amcor-Berry Global Merger Offers Strong Financial Profile
Berry Global’s shareholders will receive 7.25 Amcor shares for each BERY share held upon closing. AMCR will hold approximately 63% of the combined company, whereas Berry Global will own 37%.
The companies will have combined revenues of $24 billion and adjusted EBITDA of $4.3 billion. Annual combined cash flow is projected at more than $3 billion. The combined entity will service customers in more than 140 countries through around 400 production facilities.
AMCR estimates $650 million in benefits from identified costs, growth and financial synergies by the end of the third year of closing. The companies expect an additional $280 million of one-time cash benefits from working capital efficiencies, which will offset $280 million of pre-tax costs to achieve synergies.
The deal offers 35% adjusted cash earnings per share accretion and double-digit return on investments.