US packaging firm Amcor Plc to buy Berry in all-stock deal worth $8.43 bn

Berry's shares were up 4.4 per cent before the bell. Amcor shares were up about 1 per cent

Switzerland-based Amcor Plc on Tuesday agreed to buy U.S. peer Berry Global for $8.43 billion in an all-stock deal, creating a company with a strong presence across the consumer and healthcare packaging markets. 

Berry shareholders will receive $73.59 per share, according to the deal terms. The offer represents a premium of 9.75 per cent to Berry's last close. Berry's shares were up 7 per cent before the bell. 

The global packaging industry has been ripe for consolidation as companies have cut back on packaging inventory following a boom in demand for goods and e-commerce during the pandemic. 

In April, U.S.-based International Paper agreed to an all-share deal to buy DS Smith valuing the British packaging firm at 5.8 billion pounds ($7.2 billion). 

Amcor and Berry make cartons, closures and containers for food, beverage, pharmaceutical, medical, home and personal-care, and will have a joined footprint across more than 140 countries. 

"This combination also drives a step change in annual free cash flow, earnings growth and value creation for our shareholders," Amcor CEO Peter Konieczny said in a statement. 

Konieczny will serve as CEO of the combined company, which is expected to generate combined revenues of $24 billion and adjusted earnings of $4.3 billion, including synergies, the companies said. 

The deal is expected to close in the middle of 2025. The combined entity will be named Amcor Plc, with a primary listing on the NYSE.