Amcor(AMCR) ZACKS·2025-03-14 14:21Company Overview - Amcor plc (AMCR) and Berry Global Group, Inc. (BERY) are set to merge, with the deal clearing significant regulatory hurdles, including antitrust approvals from China and Brazil [1][2] - The merger is expected to close in mid-2025, pending additional closing conditions [2] Merger Details - The merger will create a global leader in consumer packaging solutions, combining Amcor's global flexibles and regional containers with Berry Global's regional flexibles and global containers and closures [3] - The combined entity will offer a broader range of flexible film and converted film products, focusing on sustainability and reducing carbon footprint, with flexibles accounting for approximately 60% of the business [4] Financial Profile - Upon closing, Berry Global's shareholders will receive 7.25 Amcor shares for each BERY share held, resulting in Amcor holding about 63% of the combined company [5] - The merger will result in combined revenues of 4.3 billion, with projected annual cash flow exceeding 650 million in benefits from identified costs, growth, and financial synergies by the end of the third year post-closing, along with an additional $280 million in one-time cash benefits from working capital efficiencies [7] - The deal is expected to provide a 35% adjusted cash earnings per share accretion and a double-digit return on investments [7] Leverage and Financial Strategy - Amcor anticipates a net leverage of 3.3X at the closure of the transaction, with plans to reduce it below 3.0X during the first full year [8] Industry Context - The merger is part of a broader trend of consolidation in the packaging industry, which has seen significant activity, including the merger between Novolex and Pactiv Evergreen Inc. [9] - The Novolex and Pactiv Evergreen combination will create a leading manufacturer in food, beverage, and specialty packaging products, expected to close by mid-2025 [10]