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ZURICH - Amcor plc (NYSE: AMCR, ASX: AMC), a $13.3 billion market cap leader in consumer and healthcare packaging solutions generating $13.54 billion in annual revenue, has announced the completion of its all-stock merger with Berry Global, effective today. The merger is expected to create a more comprehensive portfolio with global reach and material science innovation capabilities, aimed at revolutionizing product development and addressing sustainability goals.
The company has outlined clear financial benefits from the merger, projecting approximately 12% earnings per share (EPS) accretion in fiscal year 2026, attributed solely to synergy benefits. By the end of fiscal year 2028, Amcor anticipates over 35% EPS accretion and expects annual cash flow to surpass $3 billion, bolstering its capacity for organic reinvestment, mergers and acquisitions, and enhanced returns to shareholders through dividends and share repurchases. The company currently offers a significant 5.47% dividend yield and trades at an attractive PEG ratio of 0.68, according to InvestingPro data.
Amcor’s CEO, Peter Konieczny, stated, "This combination delivers on our strategy to become a stronger company with a broader, more complete offering for customers and enhanced positions in attractive categories." This strategic move aligns with the company’s strong financial health, earning a "GOOD" rating from InvestingPro’s comprehensive analysis, which reveals 8 additional key insights about Amcor’s market position and growth potential. He emphasized the company’s readiness to leverage the synergies and growth opportunities presented by the merger, including Amcor’s expanded global footprint and innovation capabilities.
In fiscal 2026, Amcor expects to achieve $260 million in pre-tax synergies, which will contribute to the anticipated EPS increase. By fiscal 2028, the company aims to realize approximately $650 million in total pre-tax synergy benefits, alongside $280 million in one-time cash benefits from working capital improvements.
Konieczny concluded by expressing confidence in Amcor’s strengthened position to meet evolving customer and consumer needs, and welcomed new employees, customers, and shareholders to what he described as "an exciting and incredibly strong future for Amcor."
Amcor, with approximately 70,000 employees across 140 countries, is committed to developing sustainable packaging solutions. The merger with Berry is poised to enhance the company’s capacities in serving millions of consumers daily. For detailed analysis of Amcor’s valuation and growth prospects, investors can access the comprehensive Pro Research Report available exclusively on InvestingPro, which provides in-depth insights into the company’s financial metrics and future potential.
This news is based on a press release statement, which also included cautionary language regarding forward-looking statements, highlighting the inherent risks and uncertainties in such projections.
In other recent news, Amcor reported second-quarter earnings that aligned with analyst expectations, achieving an adjusted earnings per share of $0.16. However, the company fell short on revenue, reporting $3.24 billion compared to the anticipated $3.36 billion. Despite the revenue miss, Amcor’s adjusted EBIT increased by 5% on a comparable constant currency basis, reaching $363 million. The company also reaffirmed its fiscal year 2025 outlook, projecting adjusted EPS between $0.72 and $0.76, consistent with the analyst consensus of $0.74 per share.
Amcor has also provided new financial details related to its merger with Berry Global Group, with the merger expected to close by mid-2025. The pro forma financial statements filed with the SEC offer insights into the potential financial landscape of the combined entity. Meanwhile, Raymond James has initiated coverage of Amcor with a Market Perform rating, expressing a cautious outlook due to the challenging macroeconomic environment. The firm’s analyst, Matt Roberts, noted that the current valuation already reflects a conservative estimate of cost synergies from the merger. Investors are advised to review the relevant SEC filings for comprehensive details about the merger.
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