By mid-2025, Indiana-based Berry Global and Amcor will merge into one company, with the new company based in Europe.
The board of directors of both companies unanimously approved the merger, according to news releases from November
The new company to be named Amcor plc will be headquartered in Zurich, Switzerland, where Amcor is currently based, while retaining “a significant presence” in Evansville, Indiana, where Berry Global is based.
Both companies are members of the Flexible Packaging Association (FPA). William “Bill” Jackson, Ph.D., chief technology officer at Amcor Global Flexible Packaging, is chair of FPA’s board of directors. Kevin Kwilinski, CEO of Berry Global since October 2023, has been serving on FPA’s board of directors and is a member of the executive committee.
Berry Global completed a merger between its health, hygiene, and specialties global nonwovens and films business (HHNF) and Glatfelter Corporation earlier in November. That merger created a new company, Magnera Corporation, which trades on the New York Stock Exchange (NYSE) as MAGN.
“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,” Kwilinski said in a statement.
“Our combination with Amcor is a logical next step in our company’s evolution.”
Amcor CEO Peter Konieczny said the deal will help global and local customers grow faster and operate more efficiently.
“We will have a more complete and more sustainable product offering, supported by stronger innovation capabilities, global scale, and supply chain flexibility,” said Konieczny, who will serve as the combined company’s CEO.
Graeme Liebelt, Amcor’s current board chairman, will serve as chairman of the board at the new company. And Stephen Sterrett, chairman of the board at Berry Global, will serve as deputy chairman of the combined company.
The Terms
Both companies trade on the NYSE, and the deal calls for an all-stock transaction. Berry shareholders will receive a fixed exchange ratio of 7.25 shares for each share of Berry upon closing.
The result will be that Amcor shareholders will own about 63% of the new company, and Berry shareholders will own about 37%, the companies said.
Berry’s stock trades under BERY and Amcor under AMCR on the NYSE. About two weeks after the merger announcement, Berry’s stock was hovering at $69.85. The 52-week range was a low of $49.64 and a high of $73.31. For Amcor, the stock was trading at $10.24. The 52-week range was a low of $8.78 and a high of $11.48.
The financial benefits include combined revenues of $24 billion, the companies said.
The companies did not say whether there would be layoffs. However, it reported that by the end of the third year, the companies expect a “$650 million benefit from identified cost, growth, and financial synergies.”
The closing is expected by the middle of 2025, subject to customary regulatory and shareholder approvals and closing conditions.
Amcor produces flexible packaging but also rigid packaging, specialty cartons, closures, and services. In its statement, it said Amcor is focused on making packaging that is increasingly recyclable, reusable, and lighter weight and is made using an increasing amount of recycled content.
In fiscal year 2024, Amcor had 41,000 workers with operations that span 212 locations in 40 countries.
Berry has more than 34,000 global employees across more than 200 locations globally.
Thomas A. Barstow is senior editor of FlexPack VOICE®.