Amcor has acquired packaging business called Berry Group for $8.4 billion USD, making it the undisputed heavyweight champ of consumer packaging.
👉 Background: Amcor started as a humble little paper mill in Melbourne back in the 1860s, and has grown to over 41,000 employees in 40 countries. While it first listed on the ASX, it shifted its primary listing to the NYSE in 2019 after a US-based acquisition.
👉 What happened: But now, Amcor has acquired packaging business called Berry Group for $8.4 billion USD. This will mean Amcor will have more than 75,000 employees, making it the undisputed heavyweight champ of consumer packaging.
👉 What else: While the acquisition technically values Berry Group at $8.4 billion USD, there won’t be any cash changing hands because it was an all-scrip deal.
💡An all-scrip deal is when shareholders of the acquired company receive stock in the acquiring company… instead of cash.
💡The idea is that an all-scrip approach aligns the interests of both companies’ shareholders, because the success of the new combined entity directly impacts both of their investments.
💡As part of this deal, Amcor shareholders will own 63% of the combined business, while Berry shareholders will own 37%. And this isn’t Amcor’s first rodeo with all-scrip deals. Back in 2019, Amcor acquired Bemis Company for $6.8 billion using a similar structure.
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