Amcor, a global packaging company, recently completed the merger with Berry Global Group Inc., resulting in Berry becoming a wholly-owned subsidiary of Amcor. The following unaudited pro forma condensed combined statement of income for the fiscal year ended June 30, 2025, gives insight into the financial impact of the merger and related financing transactions.
Net sales for Amcor and Berry as adjusted for the ten months ended April 30, 2025, were $15,009 million and $8,233 million, respectively. After adjustments, the combined net sales amount to $23,242 million. The gross profit for the combined entity stands at $4,463 million.
The operating income for the combined entity is $1,397 million, with interest income at $77 million and interest expenses at $674 million. The income before income taxes and equity in loss of affiliated companies is reported at $783 million, with a net income of $567 million. Net income attributable to Amcor plc is $560 million, and the basic and diluted earnings per share are both $0.35.
The pro forma adjustments are based on reported available information and methodologies that are factually supportable and directly attributable to the merger and financing transactions. The pro forma financial statement also reflects the issuance of unsecured notes by Amcor and the repayment of certain of Berry’s outstanding indebtedness.
Furthermore, the pro forma financial statement indicates that Berry’s historical debt consisted of $7.2 billion as of April 30, 2025, of which approximately $5.2 billion was acquired in the merger. The remaining debt was repaid upon consummation of the merger using the proceeds from the debt financing and available cash resources.
The pro forma financial statement also notes that the acquisition of Berry is accounted for using the acquisition method of accounting under Accounting Standards Codification (“ASC”) 805, Business Combinations, with Amcor as the acquiring entity, and provides details about the fair value measurements for the acquired assets and liabilities.
The market has reacted to these announcements by moving the company's shares 0.49% to a price of $8.23. For more information, read the company's full 8-K submission here.
