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Evansville-based plastics manufacturer Berry Global Group Inc. is set to be acquired Amcor plc, a packaging company headquartered in Zurich, Switzerland, Amcor announced Tuesday morning.
The all-stock deal is valued at $8.4 billion, Berry confirmed to Inside INdiana Business.
Amcor said in a news release that the combination “brings together two highly complementary businesses to create a global leader in consumer packaging solutions.”
“We will have a more complete and more sustainable product offering, supported by stronger innovation capabilities, global scale and supply chain flexibility,” Amcor CEO Peter Konieczny said in written remarks. “We will help global and local customers grow faster and operate more efficiently with a team of exceptional talent.”
News of the acquisition comes less than two weeks after Berry announced it had completed the spinoff of its Health, Hygiene and Specialties Global Nonwovens and Films business.
“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,” Berry CEO Kevin Kwilinski said. “We expect to better serve customers through a comprehensive and innovative consumer packaging portfolio and a complementary geographic coverage.”
During a conference call with investors, Kwilinski discussed the complementary nature of the the two businesses joining forces.
The combined company would have a total revenue of $24 billion, employing about 70,000 employees across 400 production facilities around the world.
If the acquisition is approved, the combined company will retain the Amcor name, with its head office remaining in Zurich. However, Amcor noted that the company will maintain a “significant presence” in Evansville.
Berry Global Group is the sixth-largest public company in Indiana with $12.7 billion in revenue in 2023, according to IBJ research. The company employs 40,000 people across its entire footprint.
Konieczny will continue to serve as the company’s CEO. It was not immediately clear if Kwilinksi will remain with the company.
Berry shareholders will receive 7.25 shares of Amcor stock for each share of Berry common stock they own. When the deal is complete, Amcor and Berry shareholders will own approximately 63% and 37% of the combined company, respectively, Amcor said.
The acquisition received unanimous approval by the boards of both companies and remains subject to shareholder and regulatory approvals, as well as other customary closing conditions.
The companies aim to close on the deal in mid-2025. Upon closing, Amcor’s board of directors will expand to 11, with four being nominated by Berry.
Berry Global’s stock was up nearly 2% to $68.24 per share as of 1 p.m. Tuesday.
Berry Global was founded in 1967 under the name Imperial Plastics, making aerosol caps. It became Berry Plastics in 1982 after being acquired by Jack Berry Sr. It changed its name to Berry Global in 2017.
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