(Bloomberg) -- Amcor Plc agreed to acquire Berry Global Group Inc. for about $8.4 billion in a combination of two of the world’s biggest makers of packaging.
Shareholders of Evansville, Indiana-based Berry will receive 7.25 Amcor shares for each Berry share in the all-stock transaction, according to a statement. At $73.59 per Berry share, the price represents a roughly 10% premium to Monday’s close.
Shareholders of Amcor, which is based in Zurich, will hold about 63% of the combined companies, which have revenue of $24 billion, according to the statement.
The packaging industry has seen a run of deals in recent months, with notable combinations including International Paper Co.’s move to buy DS Smith Plc and Smurfit Kappa Group’s agreement to acquire WestRock in a transaction that created Smurfit WestRock Plc.
Amcor specializes in packaging for a range of food and drink products, as well as healthcare and other markets. Berry Global’s products include trash bags, bottles and vials.
The companies said they anticipate a $650 million benefit from cost and other synergies by the end of the third year after completion of the deal, which is expected in the middle of next year.
Amcor Chief Executive Officer Peter Konieczny will take on that role at the combined companies, and the headquarters will remain in Switzerland. Amcor and Berry said they’ll maintain a “significant presence” in Evansville.
Berry shares rose 3.3% before US markets opened, trading at $69.25 each. Amcor, which is also US-listed, rose 2.1%.
(Updates with shares, other details of deal)
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