The acquisition of Berry Global by Amcor marks a landmark moment in the packaging industry, solidifying the combined entity as a global leader. The deal, valued at approximately $15.7 billion—including $7.2 billion in net debt—values Berry’s stock at $73.59 per share, representing a roughly 10% premium over the prior trading price of $67.05. The merger values Berry at 1.5x sales and 9x EBITDA, aligning closely with industry benchmarks. The combined proforma enterprise value of the new entity stands at $36 billion. The combined company will have $24 billion in sales and $4.3 billion in post-synergy EBITDA, leveraging scale, cost efficiencies, and operational excellence to maintain its competitive edge. For context, the five-year average EV/EBITDA multiple for Amcor is 11x, compared to Berry’s 7.7x.

The Amcor/Berry transaction sends a strong signal to the M&A market: consolidation remains a key strategy for companies seeking to enhance scale, operational efficiency, and market reach. For business owners considering a sale, this deal highlights the substantial value that can be unlocked through strategic acquisitions. By combining resources, companies like Amcor and Berry can achieve synergies that drive cost savings, improve profitability, and create a stronger competitive position in the marketplace.

M&A has been a key driver of growth for Berry, transforming it from a small, single-machine operation in 1967 into a leading U.S. injection molding powerhouse. This transformation was fueled by strategic acquisitions. In 1983, the company was acquired by Jack Berry and renamed Berry Plastics. It changed hands multiple times over the years, including being acquired by First Atlantic Capital in 1996 for $55 million, Goldman Sachs Group and JPMorgan Chase in 2002 for $837.5 million, and Apollo Global Management and Graham Partners in 2006 for $2.25 billion. Apollo held a 72% stake in Berry Plastics at the time, while Graham owned 10%.

By the time of its IPO in October 2012, Berry had completed over 30 acquisitions under Apollo’s management, expanded to 88 U.S. plants, and established operations in 13 international locations. Since its IPO, Berry has continued its aggressive acquisition strategy, completing about 50 acquisitions to date and deploying well over $10 billion.

The company changed its name from Berry Plastics to Berry Global in April 2017.

Berry’s growth has been remarkable. From $1.3 billion in sales in 2006 to $5.5 billion in 2012, the company now generates $10 billion in annual sales. Its market capitalization has grown from $1.71 billion at the time of its IPO to $7.94 billion in 2024—an impressive 364% increase, representing a compound annual growth rate (CAGR) of 13.4%. Additionally, Berry’s stock price surged by 38% from March to October 2024, reflecting increased investor confidence and positioning the company favorably ahead of the acquisition. 

Shareholder advocacy also played a key role in shaping Berry’s recent trajectory. In 2020, Canyon Capital, which owned 7% of Berry’s outstanding shares at that time, wrote an open letter urging better capital allocation. Ancora Holdings echoed these concerns in a second letter in 2021, highlighting that Berry’s total shareholder return lagged behind its peer group and broader market. These efforts spurred Berry to undertake significant initiatives, including stock repurchases totaling nearly $900 million, the introduction of a dividend, and modest deleveraging. In 2023, Berry also closed 20 facilities as part of cost-cutting measures, generating $140 million in annualized savings.

Today, Berry’s largest institutional shareholders collectively hold nearly 60% of the company’s shares, with the top two investors accounting for 25% of the total ownership.

For Amcor, acquiring Berry not only enhances its scale and footprint but also underscores the critical role of strategic M&A in driving growth and maintaining competitiveness in a rapidly evolving industry. This deal serves as a reference point for the broader market, signaling that packaging M&A is once again gaining momentum as companies position themselves for future growth.

The Amcor-Berry merger comes amidst several other major packaging transactions this year, including Novolex’s acquisition of Pactiv Evergreen, Smurfit Kappa’s merger with WestRock, Sonoco’s purchase of Eviosys, and International Paper’s takeover of DS Smith. These deals underscore an accelerating trend of consolidation in the sector as companies seek scale, synergies, and global reach.

According to Blaige Industry Analytics (BIA), the packaging industry is in the early stages of a long-tailed consolidation cycle. While recent M&A activity has largely focused on plastics packaging, broader consolidation across other substrates is anticipated. The Amcor-Berry deal and other mega-transactions highlight renewed interest in M&A after a quieter period in the United States. However, even with these significant deals, 2024’s year-to-date M&A activity remains subdued, with BIA estimating a 5% decline in packaging M&A compared to 2023. Encouragingly, a rebound of up to 20% is expected by 2025.