Creates broader more complete portfolio
with scale and global breadth, brings together material science and
innovation capabilities required to revolutionize product
development, enhances positions in attractive categories
Provides clear visibility to approximately 12%
EPS accretion in FY26 through synergy benefits alone 35%+
EPS accretion by end of FY28 through $650
million total synergies
Expected annual cash flow of over
$3 billion by FY28 provides
significant capacity to fund organic reinvestment, value accretive
M&A and capital returns to shareholders through a compelling
dividend and share repurchases
Unlocks further opportunities to refine
portfolio, to enhance average growth rates, margins and cash
generation
ZURICH, April 30,
2025 /PRNewswire/ -- Amcor plc ("Amcor") (NYSE: AMCR,
ASX: AMC) today announced the successful completion of its
all-stock combination with Berry Global ("Berry"), effective today.
Through this combination, Amcor enhances its position as a
global leader in consumer and healthcare packaging solutions with
the unique material science and innovation capabilities required to
revolutionize product development and meet customers' and
consumers' sustainability aspirations. With multiple new
growth opportunities and $650 million
of identified synergies, Amcor is well placed to deliver
significant near- and long-term value for customers and
shareholders.
Amcor CEO Peter Konieczny
commented, "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. Our
focus now turns to delivering on synergies and growth
opportunities, including leveraging our extensive global footprint
and enhanced innovation and R&D capabilities, while also
further refining our portfolio. The outstanding work our teams have
completed over the past several months enables Amcor to enter
fiscal 2026 in a better position than we anticipated, with a
synergy run rate that will start strong and build quickly through
the year. We are now uniquely positioned to deliver more consistent
growth, further improve margins and drive compelling near- and
long-term value for shareholders."
In fiscal 2026, before taking into account growth in the
underlying business, Amcor expects delivery of $260 million of pre-tax synergies alone to drive
adjusted EPS accretion of approximately 12 percent. By the end of
fiscal 2028, the company expects total pre-tax synergy benefits to
build to approximately $650 million
and to have delivered an additional $280
million one-time cash benefits from working capital
improvements. Including full run rate synergies, annual cash
flow is expected to exceed $3
billion by fiscal 2028, providing significant capacity for
Amcor to fund organic reinvestment, value accretive M&A and
shareholder returns through a compelling and growing dividend and
share repurchases, taking long-term shareholder value creation to a
new and higher level.
Amcor CEO Peter Konieczny
concluded, "As a clear leader in consumer and healthcare packaging
with a broad global footprint, Amcor is now better positioned to
meet customer and consumer needs as markets continue to evolve. We
are thrilled to welcome our new employees, customers and
shareholders. This is day one of an exciting and incredibly strong
future for Amcor and all our stakeholders."
About Amcor
Amcor is a global leader in packaging solutions for consumer and
healthcare products. With industry-leading innovation capabilities,
global scale and technical expertise, we help our customers grow
and meet the needs of millions of consumers every day. Our teams
develop responsible, more sustainable packaging in flexible and
rigid formats across multiple materials. Supported by a commitment
to safety, ~70,000 colleagues across ~140 countries bring our
global capabilities to local customers and provide local access to
global brands. Our work is guided by our purpose of elevating
customers, shaping lives and protecting the future.
NYSE: AMCR; ASX: AMC www.amcor.com | LinkedIn |
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Cautionary Statement Regarding Forward-Looking
Statements
This press release contains certain statements that are
"forward-looking statements" within the meaning of the safe harbor
provisions of the U.S. Private Securities Litigation Reform Act of
1995. Forward-looking statements are generally identified with
words like "believe," "expect," "target," "project," "may,"
"could," "would," "approximately," "possible," "will," "should,"
"intend," "plan," "anticipate," "commit," "estimate," "potential,"
"ambitions," "outlook," or "continue," the negative of these words,
other terms of similar meaning, or the use of future dates. Such
statements, including projections as to the anticipated benefits of
the merger with Berry Global Group Inc. ("Berry"), the impact of
the merger on Amcor's and Berry's business and future financial and
operating results and prospects, and the amount and timing of
synergies from the merger, are based on the current estimates,
assumptions, projections and expectations of the management of
Amcor and Berry and are qualified by the inherent risks and
uncertainties surrounding future expectations generally. Actual
results could differ materially from those currently anticipated
due to a number of risks and uncertainties many of which are beyond
Amcor's and Berry's control. Neither Amcor nor Berry nor any of
their respective directors, executive officers, or advisors,
provide any representation, assurance, or guarantee that the
occurrence of the events expressed or implied in any
forward-looking statements will actually occur or if any of them do
occur, what impact they will have on the business, results of
operations or financial condition of Amcor and Berry. Should any
risks and uncertainties develop into actual events, these
developments could have a material adverse effect on Amcor's and
Berry's respective businesses, the merger and the ability to
successfully realize expected benefits from the merger. Risks and
uncertainties that could cause actual results to differ from
expectations include, but are not limited to: risks arising from
the integration of the Amcor and Berry businesses; risk that the
anticipated benefits of the merger may not be realized when
expected or at all; risk of unexpected costs or expenses resulting
from the merger; risk of litigation related to the merger; risks
related to the disruption of management's time from ongoing
business operations as a result of the merger; risk that the merger
may have an adverse effect on Amcor's and Berry's respective
ability to retain key personnel and customers; general economic,
market and social developments and conditions; evolving legal,
regulatory and tax regimes under which Amcor or Berry operates;
potential business uncertainty, including changes to existing
business relationships, that could affect Amcor's and Berry's
respective financial performance; changes in consumer demand
patterns and customer requirements in numerous industries; the loss
of key customers, a reduction in their production requirements, or
consolidation among key customers; significant competition in the
industries and regions in which Amcor or Berry operates; an
inability to expand Amcor's and Berry's respective current
businesses effectively through either organic growth, including
product innovation, investments, or acquisitions; challenging
global economic conditions; impacts of operating internationally;
price fluctuations or shortages in the availability of raw
materials, energy, and other inputs which could adversely affect
Amcor's and Berry's respective businesses; production, supply, and
other commercial risks, including counterparty credit risks, which
may be exacerbated in times of economic volatility; pandemics,
epidemics, or other disease outbreaks; an inability to attract and
retain Amcor's and Berry's respective global executive teams and
Amcor's and Berry's respective skilled workforce and manage key
transitions; labor disputes and an inability to renew collective
bargaining agreements at acceptable terms; physical impacts of
climate change; cybersecurity risks, which could disrupt Amcor's
and Berry's respective operations or risk of loss of Amcor's and
Berry's respective sensitive business information; failures or
disruptions in Amcor's and Berry's respective information
technology systems which could disrupt Amcor's and Berry's
respective operations, compromise customer, employee, supplier, and
other data; a significant increase in Amcor's and Berry's
respective indebtedness or a downgrade in Amcor's and Berry's
respective credit ratings could reduce Amcor's and Berry's
respective operating flexibility and increase Amcor's and Berry's
respective borrowing costs and negatively affect Amcor's and
Berry's respective financial condition and results of operations;
rising interest rates that increase Amcor's and Berry's respective
borrowing costs on Amcor's and Berry's respective variable rate
indebtedness and could have other negative impacts; foreign
exchange rate risk; a significant write-down of goodwill and/or
other intangible assets; a failure to maintain an effective system
of internal control over financial reporting; an inability of
Amcor's and Berry's respective insurance policies, including
Amcor's and Berry's respective use of a captive insurance company,
to provide adequate protection against all of the risks Amcor and
Berry face; an inability to defend Amcor's or Berry's respective
intellectual property rights or intellectual property infringement
claims against Amcor or Berry; litigation, including product
liability claims or litigation related to Environmental, Social,
and Governance ("ESG"), matters or regulatory developments;
increasing scrutiny and changing expectations from investors,
customers, suppliers, and governments with respect to Amcor's and
Berry's respective ESG practices and commitments resulting in
additional costs or exposure to additional risks; changing ESG
government regulations including climate-related rules; changing
environmental, health, and safety laws; changes in tax laws or
changes in Amcor's and Berry's respective geographic mix of
earnings; and other risks and uncertainties are supplemented by
those identified from time to time in Amcor's and Berry's filings
with the Securities and Exchange Commission (the "SEC"), including
without limitation, those described under Part I, "Item 1A - Risk
Factors" in Amcor's Annual Report on Form 10-K for the fiscal year
ended June 30, 2024 and Berry's
Annual Report on Form 10-K for the fiscal year ended September 28, 2024, each as updated by Amcor's or
Berry's quarterly reports on Form 10-Q. You can obtain copies of
Amcor's and Berry's filings with the SEC for free at the SEC's
website (www.sec.gov). Forward-looking statements included herein
are made only as of the date hereof and Amcor and Berry do not
undertake any obligation to update any forward-looking statements,
or any other information in this communication, as a result of new
information, future developments or otherwise, or to correct any
inaccuracies or omissions in them which become apparent, except as
expressly required by law. All forward-looking statements in this
communication are qualified in their entirety by this cautionary
statement.
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SOURCE Amcor
