Amcor and Berry Global Announce Important Milestone Towards Transaction Closing
Amcor and Berry Global have filed their definitive joint proxy statement with the SEC, marking a significant step toward completing their previously announced all-stock merger. Both companies will hold shareholder meetings on February 25, 2025. The merger aims to create a global leader in consumer and healthcare packaging solutions.
The combined entity expects to achieve $650 million in synergies through cost savings, growth, and financial improvements by the end of the third year post-merger. This includes $530 million in cost synergies, $60 million in financial savings, and $60 million from growth synergies. The company projects combined annual cash flow exceeding $3 billion and over 35% adjusted cash earnings per share accretion.
The transaction, unanimously recommended by both boards, is expected to close by mid-2025. The merger aims to enhance long-term shareholder value creation from 10-15% to 13-18% annually through sustained higher earnings growth and continued dividend growth.
Amcor e Berry Global hanno presentato la loro dichiarazione di delega congiunta definitiva alla SEC, segnando un passo significativo verso il completamento della loro fusione totalmente azionaria precedentemente annunciata. Entrambe le aziende terranno assemblee degli azionisti il 25 febbraio 2025. L'obiettivo della fusione è creare un leader globale nelle soluzioni di imballaggio per i consumatori e per il settore sanitario.
L'entità combinata prevede di raggiungere 650 milioni di dollari in sinergie attraverso risparmi sui costi, crescita e miglioramenti finanziari entro la fine del terzo anno dopo la fusione. Ciò include 530 milioni di dollari in sinergie sui costi, 60 milioni di dollari in risparmi finanziari e 60 milioni di dollari dalle sinergie di crescita. L'azienda prevede un flusso di cassa annuale combinato superiore a 3 miliardi di dollari e un incremento degli utili per azione rettificati superiore al 35%.
La transazione, raccomandata all'unanimità da entrambi i consigli, dovrebbe chiudere entro la metà del 2025. L'obiettivo della fusione è migliorare la creazione di valore per gli azionisti a lungo termine dal 10-15% al 13-18% all'anno, attraverso una sostenuta crescita degli utili e un continuo aumento dei dividendi.
Amcor y Berry Global han presentado su declaración de poder conjunta definitiva ante la SEC, marcando un paso significativo hacia la finalización de su fusión previamente anunciada totalmente en acciones. Ambas empresas celebrarán reuniones de accionistas el 25 de febrero de 2025. La fusión tiene como objetivo crear un líder global en soluciones de embalaje para consumidores y en el sector de la salud.
La entidad combinada espera lograr 650 millones de dólares en sinergias a través de ahorros en costos, crecimiento y mejoras financieras para el final del tercer año posterior a la fusión. Esto incluye 530 millones de dólares en sinergias de costos, 60 millones de dólares en ahorros financieros y 60 millones de dólares de sinergias de crecimiento. La compañía proyecta un flujo de caja anual combinado que supere los 3 mil millones de dólares y un aumento de más del 35% en las ganancias por acción ajustadas.
La transacción, recomendada por unanimidad por ambos consejos, se espera que se cierre a mediados de 2025. La fusión busca mejorar la creación de valor para los accionistas a largo plazo del 10-15% al 13-18% anualmente, mediante un crecimiento sostenido de las ganancias y un continuo incremento de los dividendos.
암코르(Amcor)와 베리 글로벌(Berry Global)는 SEC에 최종 공동 위임장을 제출하여 이전에 발표된 전량 주식 합병 완료를 향한 중요한 단계를 밟았습니다. 두 회사는 2025년 2월 25일 주주 총회를 개최할 예정입니다. 이번 합병의 목표는 소비자 및 헬스케어 포장 솔루션의 세계적 리더를 만드는 것입니다.
합병된 법인은 합병 후 3년이 끝날 때까지 비용 절감, 성장 및 재무 개선을 통해 6억 5천만 달러의 시너지를 달성할 것으로 기대하고 있습니다. 여기에는 5억 3천만 달러의 비용 시너지, 6천만 달러의 재무 절감 및 6천만 달러의 성장 시너지가 포함됩니다. 회사는 연간 30억 달러 이상의 합산 현금 흐름과 35% 이상의 조정된 주당 순이익 증가를 예상합니다.
양측 이사회가 만장일치로 권장한 이 거래는 2025년 중반까지 종료될 것으로 예상됩니다. 이번 합병은 지속적인 높은 이익 성장 및 배당금 증가를 통해 장기적으로 주주 가치를 연간 10-15%에서 13-18%로 향상시키는 것을 목표로 하고 있습니다.
Amcor et Berry Global ont déposé leur déclaration de procuration conjointe définitive auprès de la SEC, marquant une étape significative vers l'achèvement de leur fusion en actions précédemment annoncée. Les deux entreprises tiendront des réunions d'actionnaires le 25 février 2025. Cette fusion vise à créer un leader mondial dans les solutions d'emballage pour les consommateurs et le secteur de la santé.
L'entité combinée s'attend à réaliser 650 millions de dollars de synergies grâce à des économies de coûts, de la croissance et des améliorations financières d'ici la fin de la troisième année suivant la fusion. Cela inclut 530 millions de dollars en synergies de coûts, 60 millions de dollars en économies financières et 60 millions de dollars grâce aux synergies de croissance. L'entreprise prévoit un flux de trésorerie annuel combiné dépassant les 3 milliards de dollars et un accroissement de plus de 35 % des bénéfices ajustés par action.
La transaction, recommandée à l'unanimité par les deux conseils, devrait se finaliser d'ici mi-2025. La fusion vise à accroître la création de valeur à long terme pour les actionnaires de 10-15 % à 13-18 % par an grâce à une croissance soutenue des bénéfices et une continuité de la hausse des dividendes.
Amcor und Berry Global haben ihre endgültige gemeinsame Vollmachtserklärung bei der SEC eingereicht, was einen bedeutenden Schritt zur Vollziehung ihrer zuvor angekündigten Aktienfusion darstellt. Beide Unternehmen werden am 25. Februar 2025 Hauptversammlungen der Aktionäre abhalten. Ziel der Fusion ist es, einen globalen Marktführer im Bereich Verpackungslösungen für Verbraucher und Gesundheitswesen zu schaffen.
Die fusionierte Einheit erwartet, bis zum Ende des dritten Jahres nach der Fusion 650 Millionen Dollar an Synergien durch Kosteneinsparungen, Wachstum und finanzielle Verbesserungen zu erzielen. Dazu gehören 530 Millionen Dollar in Kostensynergien, 60 Millionen Dollar an finanziellen Einsparungen und 60 Millionen Dollar aus Wachstumssynergien. Das Unternehmen prognostiziert einen kombinierten jährlichen Cashflow von über 3 Milliarden Dollar und eine Erhöhung des bereinigten Gewinns je Aktie um mehr als 35%.
Die Transaktion, die von beiden Vorständen einstimmig empfohlen wurde, wird voraussichtlich Mitte 2025 abgeschlossen sein. Ziel der Fusion ist es, den langfristigen Wert für die Aktionäre jährlich von 10-15% auf 13-18% durch anhaltendes höheres Gewinnwachstum und kontinuierliches Dividendenwachstum zu steigern.
- Expected $650 million in total synergies by end of third year post-merger
- Combined annual cash flow projected to exceed $3 billion
- Over 35% adjusted cash earnings per share accretion expected
- Increased shareholder value creation target from 10-15% to 13-18% annually
- $280 million one-time cash benefits expected from working capital efficiencies
- $280 million in expected pre-tax costs to achieve synergies
Insights
This transformative merger positions the combined entity as a dominant force in consumer and healthcare packaging, with compelling financial metrics that warrant careful analysis. The $650 million in identified synergies breaks down into three key components: $530 million in cost synergies, $60 million in financial savings and $60 million from growth initiatives.
The transaction's structure as an all-stock deal preserves capital flexibility while maintaining an investment-grade balance sheet. The projected combined annual cash flow of $3+ billion provides substantial financial firepower for future growth initiatives, debt reduction and shareholder returns. The
The enhanced long-term shareholder value creation target of
Most compelling is the strategic rationale focusing on material science capabilities and sustainability solutions - critical differentiators in today's packaging market. The combined entity's expanded portfolio and enhanced innovation capabilities position it to capture growing demand for sustainable packaging solutions, particularly in high-margin healthcare and consumer segments.
The filing of the definitive joint proxy statement marks a important milestone in this industry-reshaping merger. The timeline from shareholder meetings in February to mid-2025 completion allows adequate time for regulatory reviews and integration planning, though antitrust scrutiny could extend this timeline given the significant market share combination.
Integration execution will be critical, particularly in achieving the ambitious
The transaction's unanimous board approval and structured governance framework indicate thorough due diligence and alignment between management teams. The working capital optimization target of $280 million appears achievable given the complementary nature of operations and potential inventory rationalization opportunities.
Market concentration in key segments will likely attract regulatory attention, particularly in flexible packaging and healthcare solutions. However, the global nature of the industry and fragmented competition in many submarkets should facilitate regulatory approval, albeit potentially with targeted divestitures.
Joint Proxy Statement Filed with
Amcor and Berry Global Shareholder Meetings to take place on 25 February 2025
This transaction brings together two highly complementary businesses to create a global leader in consumer and healthcare packaging solutions, uniquely positioned to accelerate growth across a broader and scaled flexible film, containers, closures and dispensing packaging portfolio. The combined company will have significant opportunities to further refine the portfolio and leverage differentiated material science and innovation capabilities to revolutionize product development, and solve customers’ and consumers’ sustainability needs.
In addition, substantial value is expected to be created for both sets of shareholders through the delivery of
The transaction is unanimously recommended by the Boards of Directors of both companies.
The Joint Proxy Statement includes important information relevant to the transaction, including information about the shareholder meetings, how to vote and governance matters related to the combined company following completion of the transaction.
Summarized key dates are provided below:
Event |
Date4 |
Record date for both Berry and Amcor shareholders |
Friday, 17 January 2025 |
Definitive Joint Proxy Statement filed with the SEC |
Thursday, 23 January 2025 |
Amcor Extraordinary General Meeting |
Tuesday, 25 February 2025 |
Berry Special Meeting |
Tuesday, 25 February 2025 |
Expected transaction completion date |
Middle of calendar year 2025 |
Notes: |
||
1. |
Estimated synergies of approximately |
|
2. |
Defined as combined operating cash flow including run-rate synergies, after interest and tax, before capital expenditures. |
|
3. |
Inclusive of run-rate impact of synergies by the end of the third year after consummation of the transaction and is relative to Amcor’s LTM 30 September, 2024 standalone EPS. |
|
4. |
Dates remain subject to change and reasonable notice of any such variation will be provided. No assurance can be given that completion will occur within this timeframe or at all. |
|
About Amcor
Amcor plc is a global leader in developing and producing responsible packaging solutions across a variety of materials for food, beverage, pharmaceutical, medical, home and personal-care, and other products. Amcor works with leading companies around the world to protect products, differentiate brands, and improve supply chains. The Company offers a range of innovative, differentiating flexible and rigid packaging, specialty cartons, closures and services. The company is focused on making packaging that is increasingly recyclable, reusable, lighter weight and made using an increasing amount of recycled content. In fiscal year 2024, 41,000 Amcor people generated
About Berry
Berry is a global leader in innovative packaging solutions that we believe make life better for people and the planet. We do this every day by leveraging our unmatched global capabilities, sustainability leadership, and deep innovation expertise to serve customers of all sizes around the world. Harnessing the strength in our diversity and industry-leading talent of over 34,000 global employees across more than 200 locations, we partner with customers to develop, design, and manufacture innovative products with an eye toward the circular economy. The challenges we solve and the innovations we pioneer benefit our customers at every stage of their journey.
Important Information for Investors and Shareholders
This communication does not constitute an offer to sell or the solicitation of an offer to buy or exchange any securities or a solicitation of any vote or approval in any jurisdiction. It does not constitute a prospectus or prospectus equivalent document. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the
In connection with the proposed transaction between Amcor plc (“Amcor”) and Berry Global Group (“Berry”), on January 13, 2025, Amcor filed with the Securities and Exchange Commission (the “SEC”) a registration statement on Form S-4, as amended on January 21, 2025, containing a joint proxy statement of Amcor and Berry that also constitutes a prospectus of Amcor. The registration statement was declared effective by the SEC on January 23, 2025 and Amcor and Berry commenced mailing the definitive joint proxy statement/prospectus to their respective shareholders on or about January 23, 2025. INVESTORS AND SECURITY HOLDERS OF AMCOR AND BERRY ARE URGED TO READ THE DEFINITIVE JOINT PROXY STATEMENT/PROSPECTUS AND OTHER DOCUMENTS FILED OR THAT WILL BE FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION. Investors and security holders may obtain free copies of the registration statement and the definitive joint proxy statement/prospectus and other documents filed with the SEC by Amcor or Berry through the website maintained by the SEC at http://www.sec.gov. Copies of the documents filed with the SEC by Amcor are available free of charge on Amcor’s website at amcor.com under the tab “Investors” and under the heading “Financial Information” and subheading “SEC Filings.” Copies of the documents filed with the SEC by Berry are available free of charge on Berry’s website at berryglobal.com under the tab “Investors” and under the heading “Financials” and subheading “SEC Filings.”
Certain Information Regarding Participants
Amcor, Berry, and their respective directors and executive officers may be considered participants in the solicitation of proxies from the shareholders of Amcor and Berry in connection with the proposed transaction. Information about the directors and executive officers of Amcor is set forth in its Annual Report on Form 10-K for the year ended June 30, 2024, which was filed with the SEC on August 16, 2024, its proxy statement for its 2024 annual meeting, which was filed with the SEC on September 24, 2024, and its Current Report on Form 8-K, which was filed with the SEC on January 6, 2025. Information about the directors and executive officers of Berry is set forth in its Annual Report on Form 10-K for the year ended September 28, 2024, which was filed with the SEC on November 26, 2024, and its proxy statement for its 2025 annual meeting, which was filed with the SEC on January 7, 2025. Information about the directors and executive officers of Amcor and Berry and other information regarding the potential participants in the proxy solicitations and a description of their direct and indirect interests, by security holdings or otherwise, are contained in the definitive joint proxy statement/prospectus filed with the SEC and other relevant materials filed with or to be filed with the SEC regarding the proposed transaction when they become available. To the extent holdings of Amcor’s or Berry’s securities by its directors or executive officers have changed since the amounts set forth in the definitive joint proxy statement/prospectus, such changes have been or will be reflected on Initial Statements of Beneficial Ownership on Form 3 or Statements of Beneficial Ownership on Form 4 filed with the SEC. You may obtain these documents (when they become available) free of charge through the website maintained by the SEC at http://www.sec.gov and from Amcor’s or Berry’s website as described above.
Cautionary Statement Regarding Forward-Looking Statements
This communication contains certain statements that are “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Some of these forward-looking statements can be identified by words like “anticipate,” “approximately,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “outlook,” “plan,” “potential,” “possible,” “predict,” “project,” “target,” “seek,” “should,” “will,” or “would,” the negative of these words, other terms of similar meaning or the use of future dates. Such statements, including projections as to the anticipated benefits of the proposed transaction, the impact of the proposed transaction on Amcor’s and Berry’s business and future financial and operating results and prospects, the amount and timing of synergies from the proposed transaction, the terms and scope of the expected financing in connection with the proposed transaction, the aggregate amount of indebtedness of the combined company following the closing of the proposed transaction and the closing date for the proposed transaction, are based on the current estimates, assumptions and projections of the management of Amcor and Berry, and are qualified by the inherent risks and uncertainties surrounding future expectations generally. Actual results could differ materially from those currently anticipated due to a number of risks and uncertainties, many of which are beyond Amcor’s and Berry’s control. None of Amcor, Berry or any of their respective directors, executive officers, or advisors, provide any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements will actually occur, or if any of them do occur, what impact they will have on the business, results of operations or financial condition of Amcor or Berry. Should any risks and uncertainties develop into actual events, these developments could have a material adverse effect on Amcor’s and Berry’s businesses, the proposed transaction and the ability to successfully complete the proposed transaction and realize its expected benefits. Risks and uncertainties that could cause results to differ from expectations include, but are not limited to, the occurrence of any event, change or other circumstance that could give rise to the termination of the merger agreement; the risk that the conditions to the completion of the proposed transaction (including shareholder and regulatory approvals) are not satisfied in a timely manner or at all; the risks arising from the integration of the Amcor and Berry businesses; the risk that the anticipated benefits of the proposed transaction may not be realized when expected or at all; the risk of unexpected costs or expenses resulting from the proposed transaction; the risk of litigation related to the proposed transaction; the risks related to disruption of management’s time from ongoing business operations as a result of the proposed transaction; the risk that the proposed transaction may have an adverse effect on the ability of Amcor and Berry to retain key personnel and customers; and those risks discussed in Amcor’s and Berry’s respective filings with the SEC. Forward looking statements included herein are made only as of the date hereof and neither Amcor nor Berry undertakes any obligation to update any forward-looking statements, or any other information in this communication, as a result of new information, future developments or otherwise, or to correct any inaccuracies or omissions in them which become apparent. All forward-looking statements in this communication are qualified in their entirety by this cautionary statement.
Note Regarding Use of Non-GAAP Financial Measures
Included in this communication are measures of financial performance that are not calculated in accordance with
In arriving at these non-GAAP measures, Amcor excludes items that either have a non-recurring impact on the income statement or which, in the judgment of our management, are items that, either as a result of their nature or size, could, were they not singled out, potentially cause investors to extrapolate future performance from an improper base. These non-GAAP measures are presented for illustrative purposes only, contain a variety of adjustments, assumptions and preliminary estimates and are not necessarily indicative of what the combined company’s actual results of operations or financial condition would be upon completion of the merger.
In the view of Amcor’s management, the estimated synergies included in this communication were prepared on a reasonable basis, reflecting the best available estimates and judgments of Amcor’s management at the time of preparation and presented as of the time of preparation, to the best of Amcor’s management’s knowledge and belief, the expected course of action and the expected performance of the combined company. While presented with numerical specificity, the estimated synergies presented herein are subject to estimates and assumptions in many respects, inherently uncertain and, as a result, subject to interpretation. The estimates and assumptions used to prepare these estimated synergies may prove not to be appropriate for any number of reasons, including general economic conditions, trends in the packaging industry, including trends in capital spending, inventory and unit production, competition and the risks discussed under the sections entitled “Cautionary Statement Regarding Forward-Looking Statements” and “Risk Factors” in the Joint Proxy Statement. Such estimated synergies do not take into account any circumstances or events occurring after the date such information was prepared and also reflect assumptions as to certain business decisions that are subject to change.
These non-GAAP financial measures should not be construed in isolation or as a substitute for, or superior to, results determined in accordance with
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Amcor Investor Relations Contacts
Tracey Whitehead
Global Head of Investor Relations
T: +61 408 037 590
E: tracey.whitehead@amcor.com
Damien Bird
Vice President Investor Relations Asia Pacific
T: +61 481 900 499
E: damien.bird@amcor.com
Damon Wright
Vice President Investor Relations North America
T: +1 224 313 7141
E: damon.wright@amcor.com
Amcor Media Contacts
James Strong
Managing Director
Sodali & Co
T: +61 448 881 174
E: james.strong@sodali.com
Ernesto Duran
Amcor Head of Global Communications
T: +41 78 698 69 40
E: ernesto.duran@amcor.com
Julie Liedtke
Amcor Director, Media Relations
T: +1 847 204 2319
E: julie.liedtke@amcor.com
Berry Investor Relations / Media Contact
Dustin Stilwell
VP, Head of Investor Relations
T: +1 812 306 2964
E: ir@berryglobal.com
E: mediarelations@berryglobal.com
Source: Berry Global Group, Inc.
FAQ
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