Amcor is swallowing US packaging group Bemis in a $9 billion deal

Julian Herbert/Getty Images
  • Amcor takes over US packaging group Bemis.
  • The combined group will have revenue of $US13 billion.
  • All-stock cash free transaction will give Amcor shareholders 71% of the combined entity.

Australian packaging company Amcor is taking over US-based rival Bemis Company in a $US6.8 billion ($A9.2 billion) all-script deal and shifting its main stock exchange listing to America.

The deal will create a company with revenue of $US13 billion. Amcor, established in 1860 in Victoria, will establish primary listing on NYSE with an estimated market capitalisation of $US17 billion. It will maintain a listing on ASX.

Emerging from the transaction will be a global leader in packaging with a more balanced, profitable exposure to emerging markets.

The transaction is being done at a fixed exchange ratio of 5.1 Amcor shares for each Bemis share, resulting in Amcor shareholders owning 71% of the combined company.

This is equivalent to a transaction price of $US57.75 per Bemis share based on Amcor’s closing share price of $A15.28 on August 3. Amcor shares were trading down more than 5% today to $A14.48.

“The strategic rationale for this combination and the financial benefits are highly compelling for both Amcor and Bemis shareholders,” says Amcor CEO Ron Delia.

“We are convinced this is the right deal at the right time for both companies, and with the right structure for both sets of shareholders to participate in a unique value creation opportunity.

“Amcor identified flexible packaging in the Americas as a key growth priority and this transaction delivers a step change in that region.”

Bemis’ President and CEO, William F. Austen, says the combination of Bemis and Amcor creates a global leader in consumer packaging.

“We believe this combination, which is an exciting growth story for both companies, will benefit all stakeholders,” he says.

“The combination will enable us to offer global, regional and local customers the most compelling value proposition in the industry through a broader product portfolio, increased product differentiation and enhanced operating capabilities, while leveraging Bemis’ extensive US manufacturing base and strengths in material science and innovation.”

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