If Amcor (ASX:AMC) wasn’t already the world’s biggest consumer and healthcare packaging powerhouse, it is very easy to argue it is now after acquiring Indiana-based Berry Global in a market-moving A$13 billion all-stock deal.
The big-money deal got a unanimous tick from the boards of directors of Amcor plc and Berry Global, with Berry’s common stock valued at $US73.59 a share.
The two packing companies announced the merger agreement late on Tuesday.
The deal is, of course, subject to shareholder and regulatory approvals.
Berry shareholders – who bought into the company through the New York Stock Exchange – are expected to get 7.25 Amcor shares for every held Berry share. This will balance out to around 37% of the new merged group.
Amcor CEO Peter Konieczny told shareholders in a November 20 update he was very confident the rubber-stamped deal would be a strong fit for Amcor’s future growth.
“This combination delivers on our strategy to accelerate growth by putting the customer first, elevating the role of sustainability, and orienting the portfolio toward faster growing, higher margin categories,” Mr Konieczny, just appointed in September, said.
“We will have a more complete and more sustainable product offering, supported by stronger innovation capabilities, global scale and supply chain flexibility. We will help global and local customers grow faster and operate more efficiently with a team of exceptional talent. This combination also drives a step change in annual free cash flow, earnings growth and value creation for our shareholders.”
Mr Konieczny has been crowned CEO of the merged Amcor plc group. He’ll be joined by Graeme Liebelt as chairman and Stephen Sterrett as deputy chairman.
Markets have yet to truly agree on how to assess the merger; Amcor shares opened down 0.57% on Tuesday and were trading at $15.70 a share at time of writing.
The company has dipped from $16.73 in October after its FY25 first quarter results.
Compared to the mixed markets, Berry Global can only be described as excited by the blockbuster $13 billion buyout – the company’s CEO, Kevin Kwilinski, spruiked the move as completely “logical” for the U.S. producer.
“It is a testament to our entire team that we’re well positioned to build on this momentum and deliver even more value to our shareholders,” Mr Kwilinski said.
“Importantly, Berry and Amcor have aligned philosophies focused on safety, employee experience, sustainability, innovation, customer intimacy, and functional excellence,” the Berry Global helmsman added. “We will be better together.”
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