Amcor and Berry shareholders approve merger

Published 26/02/2025, 13:38
Updated 26/02/2025, 13:40
© Reuters

ZURICH, Switzerland & EVANSVILLE, Ind. - Shareholders of Amcor (NYSE:AMCR) plc (NYSE: AMCR, ASX: AMC) and Berry Global Group, Inc. (NYSE: NYSE:BERY) have voted in favor of a merger between the two packaging giants, as announced in their respective shareholder meetings held on Tuesday. The approval meets one of the key conditions for the merger, initially revealed in November 2024.

The union of Amcor and Berry is poised to create a global leader in consumer and healthcare packaging solutions. The combined entity is expected to leverage shared material science and innovation capabilities to meet customer needs and sustainability goals more effectively. Management anticipates that the merger will accelerate growth in key market segments and generate approximately $650 million in synergies, potentially increasing value for shareholders. This could help address some current challenges identified by InvestingPro, including Amcor’s revenue decline of 5.62% in the last twelve months and its significant debt burden of $8.46 billion.

Peter Konieczny, CEO of Amcor, expressed confidence that the merger will enhance the company’s customer service, growth rate, and global operational scope. Berry CEO Kevin Kwilinski also remarked on the significant value creation opportunities for stakeholders that the merger is expected to bring.

The shareholder vote saw a strong turnout, with over 71% of Amcor’s and 83% of Berry’s outstanding shares represented. The approval rate was substantial, with more than 99% of Amcor’s and 98% of Berry’s voting shares in favor of the merger proposals. Both companies will file the final voting results with the US SEC on Form 8-K.

The merger is on track to be finalized by mid-2025, subject to the satisfaction of remaining closing conditions.

Amcor and Berry are recognized for their commitment to responsible packaging solutions and innovation, with Amcor generating $13.6 billion in sales for fiscal year 2024 and Berry employing over 34,000 people across its global operations. InvestingPro analysis reveals that Amcor’s current financial health score stands at 1.96 (FAIR), with particular strengths in relative value metrics. For deeper insights into Amcor’s financial position and growth prospects, investors can access the comprehensive Pro Research Report, which provides detailed analysis of over 1,400 US equities.

The companies have stressed that this announcement is not a solicitation of an offer to buy or exchange securities and that the merger remains subject to regulatory approvals and other closing conditions. Forward-looking statements regarding the expected benefits and timing of the merger involve risks and uncertainties, and actual results may differ materially.

This news is based on a press release statement and does not constitute an endorsement of any claims made therein.

In other recent news, DMC Global (NASDAQ:BOOM) Inc. reported its fourth-quarter 2024 earnings, revealing sales of $152.4 million, which exceeded the company’s guidance. The company achieved a consolidated adjusted EBITDA of $10.4 million, with a margin improvement to 7.8% from 4.6% in the previous quarter. DMC Global has set its sales guidance for the first quarter of 2025 between $146 million and $154 million, with an adjusted EBITDA forecast ranging from $8 million to $11 million. The company remains focused on generating free cash flow and reducing debt, despite facing challenges such as tariff uncertainties and market conditions in the commercial construction sector.

Additionally, DMC Global has extended the maturity of its Arcadia joint venture obligation to September 2026, providing more flexibility for debt reduction. The company has also emphasized its strategic initiatives, including automation and cost reduction across its business segments. Notably, Jim O’Leary, the interim CEO, underscored the prioritization of free cash flow and operational improvements. The company’s energy products business, DynaEnergetics, and composite metal business, NobelClad, have been focusing on enhancing product reliability and competitiveness. Overall, these developments indicate DMC Global’s commitment to stabilizing and strengthening its operations amid ongoing industry challenges.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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