Amcor, a packaging company, recently entered into a merger agreement with Berry, a company listed on the NYSE. The merger will involve Amcor acquiring Berry in an all-stock deal, with Berry becoming a wholly-owned subsidiary of Amcor.
The pro forma financial statements for the year ended June 30, 2024, and the six months ended December 31, 2024, provide insights into the combined financial position and performance of Amcor and Berry after the completion of the merger and related financing transactions. These statements are based on adjustments and assumptions to reflect the impact of the merger and financing activities.
The pro forma condensed combined balance sheet as of December 31, 2024, shows the following changes: Cash and cash equivalents increased to $571 million from $445 million for Amcor and to $451 million from $0 for Berry Trade receivables increased to $2,864 million from $1,775 million Goodwill increased to $11,940 million from $5,273 million for Amcor and to $4,103 million from $0 for Berry Total assets increased to $35,610 million from $16,165 million Long-term debt increased to $13,721 million from $6,837 million Total liabilities increased to $23,210 million from $12,374 million * Shareholders' equity increased to $12,400 million from $3,791 million
The pro forma condensed combined statement of income for the year ended June 30, 2024, and the six months ended December 31, 2024, reveals the following changes: Net sales increased to $23,291 million from $13,640 million for Amcor and to $9,651 million from $0 for Berry Gross profit increased to $4,430 million from $2,712 million Operating income increased to $1,505 million from $1,214 million Net income attributable to Amcor plc increased to $750 million from $730 million for the year ended June 30, 2024, and to $413 million from $360 million for the six months ended December 31, 2024
The pro forma financial statements indicate significant increases in various financial metrics, including cash and equivalents, trade receivables, goodwill, total assets, long-term debt, net sales, gross profit, operating income, and net income, reflecting the combined financial impact of the merger and related financing transactions on Amcor and Berry.
It's important to note that these pro forma financial statements are based on available information and certain assumptions, and actual results may differ from the presented figures. Following these announcements, the company's shares moved 0.9%, and are now trading at a price of $10.38. For the full picture, make sure to review Amcor's 8-K report.
