Amcor is buying Evansville-based Berry Global Group in an $8.4 billion, all-stock transaction.
According to a report in the British website packagingnews.co.uk, “The deal will bring together two complementary businesses to create a global leader in consumer packaging solutions, with a broader flexible film and converted film offering for customers, a scaled containers and closures business and a unique global healthcare portfolio.”
Amcor is based in Switzerland. The deal values Berry’s stock shares at $73.59 each.
Like Berry, Amcor makes “cartons, closures and containers for food, beverage, pharmaceutical, medical, home and personal-care, and will have a joined footprint across more than 140 countries,” according to a report published by Reuters.
The boards of directors for both companies have unanimously approved the deal. The sale is expected to close in mid-2025.
Now 57 years old, Berry Global started in Evansville as Imperial Plastics, making aerosol overcaps using one injection molding machine. The operation had three employees.
The Fortune 500 company today has 34,000 employees making plastic packaging products for customers of all sizes, at more than 200 locations.
The new company will be called Amcor Plc.
“This combination also drives a step change in annual free cash flow, earnings growth and value creation for our shareholders,” Amcor CEO Peter Konieczny said.
Reuters reported that Konieczny will serve as CEO of the combined company, “which is expected to generate combined revenues of $24 billion and adjusted earnings of $4.3 billion, including synergies.”
The report on the Packaging News website included a quote from Berry CEO Kevin Kwilinski: “Over the past year, Berry has undergone a significant transformation, completing the spin-off of our HHNF business, enhancing our product mix and optimizing our portfolio. Our combination with Amcor is a logical next step in our company’s evolution, and 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. We expect to better serve customers through a comprehensive and innovative consumer packaging portfolio and a complementary geographic coverage. Importantly Berry and Amcor have aligned philosophies focused on safety, employee experience, sustainability, innovation, customer intimacy, and functional excellence. We will be better together, and I look forward to all we will achieve as a combined organization.”