Amcor Plc (AMCR, Financial) has announced plans to acquire Berry Global Group (BERY) for approximately $8.4 billion, marking a significant consolidation in the global packaging industry. In this all-stock transaction, Berry shareholders will receive 7.25 Amcor shares for each Berry share, which values Berry at $73.59 per share, an approximate 10% premium over its recent closing price.
Post-merger, Amcor shareholders will own about 63% of the combined entity, which is set to generate $24 billion in revenue. The recent surge in mergers within the packaging sector includes notable transactions like International Paper Company's acquisition of DS Smith Plc and Smurfit Kappa Group's agreement to buy WestRock Plc. Amcor specializes in packaging for food, beverages, healthcare, and other sectors, while Berry Global produces items like trash bags and bottles.
The merger is expected to finalize by mid-next year, and the companies anticipate $650 million in cost and synergy benefits by the end of the third year post-acquisition. Peter Konieczny, CEO of Amcor, will lead the merged company, which will maintain its headquarters in Switzerland.
In premarket trading, Berry Global's stock price rose by 4.98% to $70.39, while Amcor's stock went up by 1.48%.
