Amcor plc and Berry Global Group, Inc. have announced a definitive merger agreement to form a global leader in consumer and healthcare packaging solutions. The all-stock transaction, unanimously approved by the boards of both companies, values Berry’s stock at $73.59 per share and involves an exchange ratio of 7.25 Amcor shares for each Berry share. Post-merger, Amcor and Berry shareholders will hold approximately 63% and 37% stakes, respectively, in the combined entity.

The merger is set to integrate two complementary businesses, enhancing capabilities across flexible films, containers, and closures while expanding healthcare packaging offerings. The combined firm will focus on innovation, sustainability, and value creation, leveraging its scale to meet evolving customer demands and address sustainability challenges.

Amcor CEO Peter Konieczny stated that the merger aligns with the company’s growth strategy by prioritising customer needs and sustainability. Berry CEO Kevin Kwilinski emphasised that the merger builds on Berry’s recent portfolio optimisation efforts, enabling both companies to deliver a broader and more innovative packaging portfolio.

Strategic benefits: Innovation, sustainability, and global reach

The merged entity will offer an extensive range of packaging solutions, combining Amcor’s global flexibles and regional containers business with Berry’s regional flexibles and global containers and closures. It will strengthen its position in high-growth markets like healthcare, protein, liquids, and personal care. Sustainability will be a key focus, with innovative packaging solutions aimed at circularity, reduced carbon footprints, and increased use of alternative materials.

The merger is expected to foster technological innovation, supported by $180 million in annual R&D investments and a network of innovation centres. Additionally, the combined company will have over 7,000 patents, providing a significant competitive advantage.

Geographically, the combined firm will operate in more than 140 countries, supported by around 400 production facilities. This expansive footprint is expected to enhance supply chain resilience and better address regional market needs.

Financial outlook: Synergies and shareholder value creation

The combined company anticipates generating $24 billion in revenue and $4.3 billion in adjusted EBITDA. It projects annual cash flow of over $3 billion, enabling investments in organic growth, dividends, and share buybacks. Identified cost, growth, and financial synergies are expected to deliver $650 million in benefits within three years, including $530 million in cost savings and $60 million in earnings from growth synergies.

Shareholders are expected to benefit from enhanced earnings growth, with adjusted cash EPS accretion exceeding 35%. The deal is also expected to achieve a double-digit return on investment.

Leadership and timeline

Amcor CEO Peter Konieczny will lead the combined company, which will retain the Amcor plc name and headquarters in Zurich, Switzerland. Berry will nominate four members to the expanded 11-member board. The transaction, subject to shareholder and regulatory approvals, is expected to close by mid-2025.

The merger aims to redefine the packaging industry, creating a stronger and more sustainable entity poised to drive growth and innovation while delivering significant value to stakeholders.

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