Home Trends Business Amcor to Acquire Berry Global in USD8.4bn Deal, Forming Packaging Industry Leader

Amcor to Acquire Berry Global in USD8.4bn Deal, Forming Packaging Industry Leader

Switzerland-based Amcor Plc has announced plans to acquire U.S.-based Berry Global in an all-stock transaction valued at USD8.43bn. This strategic move will establish one of the largest players in the consumer and healthcare packaging sectors, with combined annual revenues of USD24bn.

Under the agreement, Berry Global shareholders will receive $73.59 per share, reflecting a 9.75% premium over the company’s last closing price. Following the announcement, Berry’s shares rose modestly by 1% during afternoon trading.

Industry Consolidation Amidst Market Challenges

The packaging industry has faced declining demand post-pandemic as e-commerce-driven growth slowed, leading to a wave of consolidations. Earlier this year, International Paper reached a USD7.2bn agreement to acquire DS Smith, reflecting the trend.

Amcor and Berry Global specialize in producing cartons, closures, and containers for a wide range of industries, including food, beverage, pharmaceuticals, medical devices, and personal care. Together, they will operate across more than 140 countries.

Deal Highlights

This acquisition is Amcor’s largest to date, surpassing its 2019 purchase of Bemis for USD5.25bn. Unlike that deal, which required divestitures to satisfy regulatory concerns, Amcor’s CEO Peter Konieczny does not anticipate significant regulatory hurdles in this case.

“This transaction is transformative for both companies and the industry,” Konieczny said during a call with analysts. The combined company is expected to generate adjusted earnings of USD4.3bn and achieve synergies worth approximately USD650m within three years post-closing.

Konieczny will lead the new entity as CEO, which will retain the name Amcor Plc and maintain its primary listing on the New York Stock Exchange. Amcor’s shareholders will control 63% of the combined entity, and the deal is expected to close by mid-2025.

Strategic Implications

The merger underscores the growing importance of consolidation as companies navigate market volatility and pursue efficiencies. The new Amcor-Berry Global entity will leverage its expanded footprint and diverse product portfolio to strengthen its competitive position.

Financial Performance

In a separate announcement, Berry Global reported an adjusted profit of USD2.27 per share for its fourth quarter, slightly exceeding analysts’ expectations of USD2.25 per share, according to LSEG data.

This deal marks a pivotal moment for the packaging industry, as it continues to adapt to shifting consumer and economic dynamics.