Amcor, Berry Global to combine in all-stock transaction

Amcor (AMCR) and Berry Global (BERY) announced they have entered into a definitive merger agreement, pursuant to which Amcor and Berry will combine in an all-stock transaction. Berry shareholders will receive a fixed exchange ratio of 7.25 Amcor shares for each Berry share held upon closing, resulting in Amcor and Berry shareholders owning approximately 63% and 37% of the combined company, respectively. The transaction has received unanimous approval of the boards of directors of both Amcor and Berry and values Berry’s common stock at $73.59 per share. Over 35% adjusted cash EPS accretion and double-digit return on investment is expected. Enhanced long-term shareholder value creation through sustained higher expected earnings growth from 10%-15% to 13%-18% per annum. The transaction has been unanimously approved by the boards of directors of both Amcor and Berry. Closing is targeted in the middle of calendar year 2025. The closing of the transaction is subject to shareholder approvals, regulatory approvals, and satisfaction of other customary closing conditions. Peter Konieczny will serve as CEO, Graeme Liebelt will serve as chairman and Stephen Sterrett will serve as deputy chairman of the combined company. Amcor will maintain its primary listing on the NYSE and its secondary listing on the ASX. The combined entity will be named Amcor. Global head office will remain in Zurich, Switzerland. The combined company expects to maintain a significant presence in Evansville, Indiana. Upon completion of the transaction, Amcor’s board of directors will expand to 11 directors, 4 of whom will be nominated by Berry.