Switzerland-based Amcor has agreed to buy US peer Berry Global for $8.43 billion (€7.98 billion) in an all-stock deal, creating a company with a strong presence across the consumer and healthcare packaging markets.
Berry shareholders will receive $73.59 per share, according to the deal terms. The offer represents a premium of 9.75% to Berry's last close. Berry's shares were up 7% before the bell.
The global packaging industry has been ripe for consolidation as companies have cut back on packaging inventory following a boom in demand for goods and e-commerce during the pandemic.
In April, US-based International Paper agreed to an all-share deal to buy DS Smith valuing the British packaging firm at £5.8 billion (€6.9 billion).
Amcor and Berry make cartons, closures and containers for food, beverage, pharmaceutical, medical, home and personal-care, industries and will have footprint across more than 140 countries.
The deal is one of Amcor's largest acquisitions. In 2019, it bought US rival Bemis in a $5.25 billion all-stock deal but had to divest three manufacturing facilities to gain approval from the U.S. Justice Department.
'A Step Change'
"This combination also drives a step change in annual free cash flow, earnings growth and value creation for our shareholders," Amcor CEO Peter Konieczny said in a statement.
Konieczny will serve as CEO of the combined company, which is expected to generate combined revenues of $24 billion (€22.7 billion) and adjusted earnings of $4.3 billion (€4.1 billion), including synergies, the companies said.
The deal is expected to close in the middle of 2025. The combined entity will be named Amcor Plc, with a primary listing on the NYSE.
Recently, Mondelēz International partnered with Amcor to roll out packaging made of 80% certified recycled plastic for Cadbury sharing bars manufactured in Bournville and Coolock and sold in the UK and Ireland.
From 2025, the project aims to introduce the packaging to approximately 300 million sharing bars across the UK and Ireland Cadbury core tablet portfolio.
