Packaging giants Amcor and Berry Global Group have entered into a merger agreement.
The businesses are said to be highly complementary and the combined company is anticipated to be a global leader in consumer packaging solutions.
This includes a broad flexible film and converted film offering, as well as a scaled containers and closures business.
The combined company is expected to reach US$650m in annual earnings.
“This combination delivers on our strategy to accelerate growth by putting the customer first, elevating the role of sustainability and orienting the portfolio toward faster growing, higher margin categories,” said Peter Konieczny, CEO of Australia-based Amcor.
“We will have a more complete and more sustainable product offering, supported by stronger innovation capabilities, global scale and supply chain flexibility.”
In fiscal year 2024, Amcor generated $13.6bn in annual sales.
Its operations span 212 locations in 40 countries, and involve 41,000 employees.
Berry CEO, Kevin Kwilinski, added: “Over the past year, Berry has undergone a significant transformation, completing the spin-off of our HHNF [Health, Hygiene and Specialties Global Nonwovens and Films] business, enhancing our product mix and optimising 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 are 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.”
Indiana, US, headquartered Berry Global has a staff of 34,000 employees across more than 200 locations.
Upon the merger, Berry shareholders will receive a fixed exchange ratio of 7.25 Amcor shares for each Berry share held upon closing.
This will result in Amcor and Berry shareholders owning approximately 63% and 37% of the combined company, respectively.
