Amcor plc and Berry Global Group, Inc. have announced a definitive merger agreement to combine in an all-stock transaction. The merger aims to create a global leader in consumer and healthcare packaging solutions with combined revenues of $24 billion and adjusted EBITDA of $4.3 billion.
The transaction is expected to close in mid-2025, subject to shareholder and regulatory approvals. Berry shareholders will receive a fixed exchange ratio of 7.25 Amcor shares for each Berry share held upon closing. This will result in Amcor and Berry shareholders owning approximately 63% and 37% of the combined company, respectively.
The combination of Amcor and Berry brings together two highly complementary businesses. The merged entity will have an enhanced product offering, increased innovation capabilities, and a stronger financial profile. The combined company will accelerate the development of sustainable packaging solutions through a combined R&D investment of $180 million per annum and over 1,500 R&D professionals.
This focus on sustainability will deliver greater choice for customers and consumers, offering solutions that drive circularity, increase the use of alternative materials, and reduce carbon footprints.
Amcor and Berry merger details
The transaction is expected to deliver over $650 million in annual earnings synergies by the end of the third year, with $530 million from cost synergies and $60 million from financial savings.
With approximately 400 production facilities serving customers in over 140 countries, the combined company will leverage its scale and reach to optimize its footprint, providing local expertise with global capabilities and ensuring supply chain resilience. Peter Konieczny, CEO of Amcor, stated, “This combination delivers on our strategy to accelerate growth by putting the customer first and elevating the role of sustainability. We will have a more complete and sustainable product offering supported by stronger innovation capabilities, global scale, and supply chain flexibility.
This merger drives a step change in annual free cash flow, earnings growth, and value creation for our shareholders.”
Kevin Kwilinski, CEO of Berry, remarked, “Our combination with Amcor is a logical next step in our company’s evolution. We expect to better serve customers through a comprehensive and innovative consumer packaging portfolio and a complementary geographic coverage. Berry and Amcor have aligned philosophies focused on safety, employee experience, sustainability, innovation, customer intimacy, and functional excellence.
We will be better together.”
The merger represents a transformative opportunity, bringing together the capabilities and resources of two robust companies to better serve their global customer base. The combined entity will be positioned as the innovation partner of choice, developing the most sustainable packaging solutions and unlocking significant value for shareholders. This transaction underscores the commitment of both companies to innovation, sustainability, and operational excellence.
The integration of Amcor and Berry will foster a more diversified product offering and enhanced capabilities to address the growing demands of the packaging industry.
