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Berry Global Set to be Acquired by Amcor in an All-Stock Deal

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Berry Global Group, Inc. recently entered into an agreement to be acquired by Amcor plc (AMCR - Free Report) . The financial terms of the transaction were kept under wraps.

BERY’s shares jumped 4.3% yesterday to eventually close the trading session at $69.

Based in Zurich, Switzerland, Amcor is a global leader in developing and producing packaging for food, beverage, pharmaceutical, medical, home and personal care. Through its broad range of packaging products, which include flexible and rigid packaging, specialty cartons and closures, it helps manufacturers protect their products and differentiate their brands.

Into the Headlines

This merger brings together two complementary businesses, combining Berry Global's regional flexible packaging and global containers and closures businesses with Amcor's global flexible packaging and regional container businesses. The deal also merges two strong and complementary global healthcare businesses. The new company will be a global leader in consumer packaging solutions with unmatched innovation and scale. This collaboration will also transform portfolios and create significant value for both the company’s shareholders.

The customers will have access to a wider range of flexible and converted film portfolios, along with more sustainable solutions.

Per the deal, Berry Global’s shareholders will receive 7.25 Amcor shares for each BERY share held upon closing. BERY will hold approximately 37% of the combined company, whereas Amcor will own 63%. The transaction has been fully approved by the boards of directors of both companies, valuing Berry Global's stock at $73.59 per share.

The new company is expected to have $24 billion in revenues and $4.3 billion in adjusted EBITDA. It will serve customers in more than 140 countries with approximately 400 production facilities. The transaction is expected to close in the middle of 2025, subject to closing approvals.

BERY’s Zacks Rank and Price Performance

Berry Global currently carries a Zacks Rank #3 (Hold). In the past year, the stock has gained 7.6% compared with the industry’s 20.2% growth.

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Berry Global is benefiting from strength in the Consumer Packaging North America segment. Investments in the latest equipment technologies, advantaged film development and design for circularity also bode well. However, it is experiencing weakness in its Consumer Packaging International unit due to reduced selling prices arising from the pass-through of lower resin prices.

Stocks to Consider

Some better-ranked companies are discussed below.

Packaging Corporation of America (PKG - Free Report) currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

PKG delivered a trailing four-quarter average earnings surprise of 8.6%. In the past 60 days, the Zacks Consensus Estimate for Packaging Corporation’s 2024 earnings has increased 4%.

RBC Bearings Incorporated (RBC - Free Report) presently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 2.5%.

In the past 60 days, the consensus estimate for RBC’s fiscal 2025 earnings has increased 2.3%.


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RBC Bearings Incorporated (RBC) - free report >>

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Amcor PLC (AMCR) - free report >>

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