Amcor and Berry Global merger details

Amcor plc (ASX:AMC) has announced a definitive merger agreement with Berry Global Group, Inc. This strategic merger is an all-stock transaction, combining two global leaders in packaging solutions. The merger aims to enhance innovation, sustainability, and financial synergies in the consumer and healthcare packaging market.

Strategic and financial outlook of the merger

The merger between Amcor and Berry Global Group is set to form a powerful entity in the packaging industry, with a focus on sustainability and innovation. The all-stock transaction will see Amcor and Berry shareholders owning 63% and 37% of the combined company, respectively. The merger is expected to generate $650 million in annual earnings synergies by the third year and provide over 35% adjusted cash EPS accretion. With a strong presence in high-growth categories and an increased R&D budget of $180 million, the combined company aims to serve customers in over 140 countries. The merger is subject to regulatory and shareholder approvals, with completion targeted for mid-2025.

Executive perspectives on the merger

The merger creates a global leader in consumer and healthcare packaging solutions with a combined revenue of $24 billion and adjusted EBITDA of $4.3 billion.