425: Amcor and Berry Global Integration Planning Underway, Shareholder Meetings Scheduled

Amcor plc provides an update on its planned combination with Berry Global, highlighting progress in integration planning and upcoming shareholder meetings.

Summary

• Amcor and Berry Global are progressing with their planned combination to create a global leader in consumer and healthcare packaging.
• Integration planning activities have commenced, with teams from both companies collaborating to ensure a successful start post-closing.
• Global workstreams have been formed, co-led by representatives from both Amcor and Berry, to align on roles, resources, processes, tools, and timing.
• Regional integration leads will join the team as planning continues.
• Regulatory review is progressing, and shareholder meetings are scheduled for February 25, 2025.
• The companies expect to officially combine into one organization by midyear.
• Amcor and Berry Global will continue to operate as two independent companies until the official combination.
• An Amcor-Berry combination SharePoint site has been created to provide employees with the latest information.
• Amcor filed a registration statement on Form S-4 with the SEC on January 13, 2025, as amended on January 21, 2025, containing a joint proxy statement/prospectus.
• The SEC declared the registration statement effective on January 23, 2025, and Amcor and Berry commenced mailing the definitive joint proxy statement/prospectus to their respective shareholders on or about January 23, 2025.

Sentiment

Score: 8

Explanation: The document conveys a positive sentiment regarding the planned combination, emphasizing the opportunities and progress made in integration planning. The tone is optimistic and forward-looking.

Positives

• The combination of Amcor and Berry Global is expected to create a global leader in consumer and healthcare packaging.
• Integration planning is progressing smoothly with collaboration between teams from both companies.
• The establishment of global workstreams and regional integration leads should facilitate a seamless integration process.
• The creation of a SharePoint site provides employees with easy access to information about the combination.

Risks

• The integration of the Amcor and Berry businesses poses risks.
• The anticipated benefits of the proposed transaction may not be realized when expected or at all.
• Unexpected costs or expenses may result from the proposed transaction.
• Litigation related to the proposed transaction could arise.
• The proposed transaction may disrupt management's time from ongoing business operations.
• The proposed transaction may have an adverse effect on the ability of Amcor and Berry to retain key personnel and customers.
• The risk that the conditions to the completion of the proposed transaction (including shareholder and regulatory approvals) are not satisfied in a timely manner or at all.

Future Outlook

The companies expect to officially combine into one organization by midyear.

Management Comments

• Our announced combination with Berry Global is a rare opportunity to bring two exceptional and complementary companies together to transform the packaging industry and to become a global leader in consumer and healthcare packaging solutions.
• The teams energy during the workshops was very inspiring as they explored how to combine the best of both worlds, create value and map out a plan to accelerate whats possible.
• Each of us plays a vital role in ensuring the success of this combination.
• The best way to contribute right now is by staying focused on our base business, delivering excellence to our customers and continuing to prioritize the health and safety of our teams worldwide.

Industry Context

The combination of Amcor and Berry Global reflects a trend towards consolidation in the packaging industry, aiming to create larger, more competitive players with expanded capabilities and global reach.

Comparison to Industry Standards

• Assessing the success of this merger will involve comparing the combined entity's performance against industry leaders like Ball Corporation in metal packaging and Sonoco Products Company in paper and industrial packaging.
• Key metrics will include revenue growth, cost synergies achieved, and market share gains in the consumer and healthcare packaging segments.
• Successful integration will be benchmarked against other large-scale mergers in the packaging industry, such as the integration of Bemis by Amcor in 2019, focusing on the speed and efficiency of synergy realization.

Stakeholder Impact

• Shareholders of Amcor and Berry will vote on the proposed transaction.
• Employees of both companies will be impacted by the integration process.
• Customers of both companies can expect a broader range of packaging solutions.
• The combined company will aim to deliver excellence to its customers.

Next Steps

• Continue regulatory review.
• Hold shareholder meetings on February 25, 2025.
• Continue integration planning activities.
• Officially combine into one organization by midyear.

Key Dates