Amcor Plc ("Amcor") and Berry Global Group, Inc. ("Berry") have achieved an important milestone in their all-stock transaction. Their definitive joint proxy statement has been filed with the U.S. Securities and Exchange Commission, and shareholder meetings for both companies are set to take place on 25 February 2025.
The combined company is expected to deliver $650 million in identified cost, growth, and financial synergies, which includes approximately $530 million of annual run-rate pre-tax cost synergies, approximately $60 million of annual run-rate financial savings, and approximately $60 million of annual run-rate pre-tax earnings benefit from growth synergies. Additionally, the combined annual cash flow is projected to be over $3 billion, with a commitment to an investment-grade balance sheet. The transaction is expected to deliver over 35% adjusted cash earnings per share accretion and enhance long-term shareholder valuation creation from 10-15% to 13-18% per annum.
Some key dates to note are the record date for both Berry and Amcor shareholders on 17 January 2025, and the expected transaction completion date in the middle of the calendar year 2025.
Amcor generated $13.6 billion in annual sales in fiscal year 2024, while Berry has over 34,000 global employees across more than 200 locations.
Investors and security holders of Amcor and Berry are urged to read the definitive joint proxy statement/prospectus and other relevant documents filed with the SEC as they contain important information about the proposed transaction.
The transaction is subject to the satisfaction of customary closing conditions, including approval by the shareholders of both Amcor and Berry. Today the company's shares have moved 0.1% to a price of $9.78. For more information, read the company's full 8-K submission here.
