Amcor Plc (AMCR, Financial) has agreed to acquire Berry Global Group (BERY) for approximately $8.4 billion, combining two of the world's largest packaging manufacturers. In an all-stock transaction, Berry shareholders will receive 7.25 shares of Amcor for each share of Berry, valuing Berry stock at $73.59 each, representing a 10% premium over its recent closing price.
Post-merger, Amcor shareholders will own about 63% of the combined entity, which is expected to generate revenues of $24 billion. This deal is part of a series of notable mergers in the packaging industry, including International Paper's acquisition of DS Smith Plc and Smurfit Kappa Group's agreement to buy WestRock Plc.
Amcor specializes in packaging for food and beverage products, healthcare, and other markets, while Berry Global's offerings include trash bags and bottles. The companies anticipate the deal to close by the middle of next year and expect to achieve $650 million in cost savings and other synergies by the end of the third year after completion. Peter Konieczny, CEO of Amcor, will lead the merged company, which will remain headquartered in Switzerland.
In pre-market trading, Berry's stock rose 4.98% to $70.39 per share, while Amcor's stock increased by 1.48%.
