Amcor plc AMCR announced that its previously announced merger deal with Berry Global Group, Inc. BERY made significant progress, with shareholders of both companies approving the combination. The deal is expected to close in mid-2025, subject to closing conditions.

Amcor-Berry Global Deal to Combine Complementary Businesses

The deal, previously announced on Nov. 19, 2024, is expected to bring together two highly complementary businesses, combining Amcor's global flexibles and regional containers businesses with Berry Global's regional flexibles, and global containers and closures businesses. This will create a global leader in consumer packaging solutions with remarkable innovation capabilities and scale.

Customers will get a broader flexible film and converted film offering, as well as more sustainable solutions that promote circularity and reduce carbon footprint. The merged company will have a scaled containers and closures business, and a unique global healthcare portfolio. 

Amcor will have a strengthened position in high-growth, high-value categories, including Healthcare, Protein, Pet Food, Liquids, Beauty &  Personal Care, and Food Service. 

AMCR estimates $650 million in benefits from identified costs, growth and financial synergies by the end of the third year of closing. The companies expect additional $280 million of one-time cash benefits from working capital efficiencies, which will offset $280 million of pre-tax costs to achieve synergies. 

AMCR anticipates net leverage of 3.3X at the closure of the transaction, with a path to de-leverage below 3.0X during the first full year.

Details on AMCR’s Combination With Berry Global

Berry Global’s shareholders will receive 7.25 Amcor shares for each BERY share held upon closing.

AMCR will hold approximately 63% of the combined company, whereas Berry Global will own 37%.

The companies will have combined revenues of $24 billion and adjusted EBITDA of $4.3 billion. The combined entity will service customers in more than 140 countries through around 400 production facilities.

Amcor’s Stock’s Price Performance

In the past year, the company’s shares have gained 15.8% compared with the industry’s 12% growth.

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AMCR’s Zacks Rank & Stocks to Consider

Amcor currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the Industrial Products sector are Applied Industrial Technologies, Inc. AIT and RBC Bearings Incorporated RBC. Both these companies have a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Applied Industrial Technologies has an average trailing four-quarter earnings surprise of 5.3%. The Zacks Consensus Estimate for AIT’s 2025 earnings is pinned at $9.90 per share, which indicates year-over-year growth of 1.5%. The company’s shares have gained 35.5% in a year.

The Zacks Consensus Estimate for RBC Bearings’ fiscal 2025 earnings is pegged at $9.83 per share, which indicates year-over-year growth of 14%. The company has a trailing four-quarter average earnings surprise of 4.9%. RBC shares have gained 35.2% in a year.

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This article originally published on Zacks Investment Research (zacks.com).

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