Berry Global Group, Inc. - BERY STOCK NEWS

Amcor (NYSE: AMCR) 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, with the transaction expected to close by mid-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 by the end of the third year post-merger, including $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 anticipates over 35% adjusted cash earnings per share accretion.

The transaction, unanimously recommended by both boards, is expected to enhance long-term shareholder value creation from 10-15% to 13-18% per annum through higher earnings growth and continued dividend growth.

Berry Global Group (NYSE: BERY) has announced that its subsidiary, Berry Global, Inc., is initiating exchange offers for up to $800,000,000 of new 5.650% First Priority Senior Secured Notes due 2034 and up to $800,000,000 of new 5.800% First Priority Senior Secured Notes due 2031. The exchange offers are for equal amounts of outstanding unregistered notes with the same terms.

The new Exchange Notes will be identical to the Outstanding Notes except for four key differences: they will be registered under the Securities Act of 1933, will not have transfer restrictions, will bear different CUSIP numbers, and won't include additional interest provisions. The exchange offers are exclusively available to current holders of the Outstanding Notes and will expire at 5:00 p.m. Eastern Time on February 11, 2025, unless extended.

Berry Global (NYSE: BERY) has achieved an 'AA' ESG rating from MSCI, marking its fourth consecutive year of rating upgrades. This places Berry among the top 20% of companies in MSCI's seven-grade framework and establishes it as a leader in the packaging industry.

The company demonstrated significant improvements in Corporate Governance, Corporate Behavior, and Packaging Material & Waste. Notable achievements include reaching their 2025 goal of reducing operational emissions (Scope 1 and 2) by 25% two years ahead of schedule. Berry has committed to science-based greenhouse gas reduction targets and aims for net-zero emissions by 2050.

Key initiatives include investments in recycling operations, increased use of post-consumer recycled plastic, and improved package recyclability. The company is implementing energy-saving solutions across global locations, targeting a reduction of 100 million kilowatt-hours (kWh) annually from existing operations. A detailed sustainability report is scheduled for publication in March.

Ancora Holdings Group has released its investment thesis on Amcor plc following the announced merger with Berry Global Group. The presentation, delivered at the Bloomberg Activism Forum, highlights the potential of the combined entity as a premium packaging company. Key financial projections include:

- Conservative synergy estimates of $650 million
- Projected proforma EBITDA of $4.5 billion
- Potential share price increase from ~$10 to ~$16
- Expected upside of 50-70%

The merger is anticipated to close in mid-2025, creating what Ancora believes will be a company with a durable free cash flow profile at a significantly discounted valuation.

Berry Global has announced the sale of its Specialty Tapes business to Nautic Partners for approximately $540 million. This divestment aligns with Berry's strategy to focus on consumer-oriented markets. The company plans to use the proceeds to reduce debt. Combined with the cash from the HHNF spin-off, the total proceeds of $1.3 billion will reduce Berry's pro forma net debt to $5.9 billion.

This announcement follows Berry's recent agreement to combine with Amcor in an all-stock transaction. The combined entity is projected to generate $23.6 billion in revenue and $4.3 billion in EBITDA, with an 18% margin. The transaction is expected to complete by first half of 2025.

Berry Global reported Q4 fiscal 2024 results with net sales of $3.2 billion, up 3% year-over-year, and operating income of $269 million. The company achieved 2% organic volume growth excluding HHNF. For fiscal year 2024, net sales were $12.3 billion with operating EBITDA of $2,045 million. Berry completed the spin-off of its HHNF business and merger with Glatfelter The company returned $260 million to shareholders through share repurchases and dividends, reaching its leverage target of 3.5x. Additionally, Berry announced a definitive merger agreement with Amcor Plc in an all-stock transaction.

Amcor and Berry have announced a merger agreement in an all-stock transaction, creating a global leader in consumer packaging solutions. Berry shareholders will receive 7.25 Amcor shares for each Berry share, valuing Berry's stock at $73.59 per share. The combined company will have $24 billion in revenues and $4.3 billion in adjusted EBITDA, including synergies. The merger expects to deliver $650 million in annual earnings synergies and over 35% adjusted cash EPS accretion. The transaction, expected to close mid-2025, will result in Amcor and Berry shareholders owning approximately 63% and 37% of the combined company, respectively.

Berry Global Group (NYSE: BERY) has announced it will release its fourth quarter and fiscal year 2024 results on Wednesday, November 20, 2024, before NYSE trading begins. The company will host a quarterly conference call at 10 a.m. Eastern Time to discuss results and performance. The call will be accessible via telephone registration or webcast through the company's investor relations website. A replay will be available approximately two hours after the call's completion.

Berry Global Group (NYSE: BERY) has completed the merger of its Health, Hygiene and Specialties Global Nonwovens and Films business with Glatfelter , creating Magnera (NYSE: MAGN), the world's largest nonwovens company. Through a Reverse Morris Trust transaction, Berry stockholders received 0.276305 Magnera shares for each Berry share held as of November 1, 2024, resulting in Berry stockholders owning 90% of Magnera while Glatfelter shareholders retained 10%. Berry stockholders maintain their existing Berry shares alongside the new Magnera allocation. Trading of Magnera on NYSE under 'MAGN' begins November 5, 2024.