Packaging Firms Amcor And Berry Global To Merge In All-Stock Transaction: Retail Cheers The Deal

Packaging solutions firms Amcor PLC ($AMCR) and Berry Global Group, Inc. ($BERY) announced on Tuesday that they have entered into a definitive merger agreement, following which Amcor and Berry will combine in an all-stock transaction.

As part of the deal, which has received approvals from the boards of both the companies, Berry shareholders will receive a fixed exchange ratio of 7.25 Amcor shares for each Berry share held. This will result in Amcor and Berry shareholders owning approximately 63% and 37% of the combined company, respectively.

The deal values Berry’s common stock at $73.59 per share as compared to its current market price of nearly $68 apiece.

The combined revenues amount to $24 billion while adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) amounts to $4.3 billion, including run-rate synergies, the firms said. They also see a $650 million benefit from identified cost, growth and financial synergies by the end of third year.

The firms expect the transaction to close by mid-2025. Peter Konieczny will serve as the CEO, Graeme Liebelt will serve as Chairman and Stephen Sterrett will serve as Deputy Chairman of the combined company.

The firms said that Amcor will maintain its primary listing on the NYSE and its secondary listing on the ASX. The combined entity will be named Amcor plc.

Meanwhile, retail sentiment on Stocktwits for Amcor and Berry Global were trending in the  ‘extremely bullish’ territory.

Shares of Amcor fell over 2% on Tuesday following the announcement. The stock has gained nearly 1.69% since the beginning of the year. Meanwhile, Berry Global shares were trading higher by over 1.5% on Tuesday. On a year-to-date basis, the stock has gained nearly 11%.

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