The combination of the two packaging giants aims to strengthen positioning in high-growth, high-value categories. | 360b/Shutterstock
Switzerland-headquartered packaging giant Amcor will acquire Indiana-based Berry Global in an $8.4 billion all-stock deal that’s expected to close in mid-2025, the companies announced Nov. 19, marking a continuing trend of consolidation in the packaging industry.
The combination of the two packaging giants will strengthen their positioning in “high-growth, high-value categories,” according to a press release. From largest to smallest, those segments include health care, protein, pet food, liquids, beauty and personal care, and food service.
The combined company is expected to have annual revenue of about $24 billion and adjusted earnings before interest, taxes, depreciation and amortization of $4.3 billion, according to a presentation announcing the transaction. About half of the total revenue comes from North America, with 30% in Western Europe and 20% in emerging markets including Asia, the Middle East and Africa.
The flexibles segment will account for about 60% of combined revenues, and caps and closures will make up the remainder.
Amcor accounts for $13.6 billion and Berry $10.1 billion of the combined revenue, as well as $2 billion and $1.7 billion of EBITDA respectively. The combined company will have roughly 400 production facilities globally.
Amcor’s recyclable products include PVC- and aluminum-free blister packaging made of HDPE and PE film, and Berry produces fully recyclable plastic trigger pump sprayers. Amcor’s food-grade AmFiniti contains 80% recycled content, and the Berry Total container system contains 100% PCR. Berry also produces a 100% sugarcane-based bottle.
In a quarterly earnings call Nov. 1, new Amcor CEO Peter Konieczny discussed regulatory trends including Europe’s Package and Packaging Waste Regulation, which regulates packaging in the EU market regardless of the supplier’s location. The policy is expected to be enforced around mid-2026.
“We’re supportive of such regulation to the extent that it drives the circularity that we need in order to keep plastic waste out of the environment,” Konieczny said, adding that Amcor had developed product lines including AmFiber paper packaging and AmPrima plastics to comply.
However, while fiber applications present growth opportunities, they have a smaller baseline than AmPrima recyclable plastic, which has a “pretty sizable base” for growth and “is finding good pickup in the marketplace.”
Due to its porous nature, Konieczny said, fiber will always be limited in food packaging applications that require a protective barrier. “But where it fits it is a responsible packaging substrate. And as a company that is a responsible packaging company, we proactively explore the opportunities on that end.”
He added that Amcor is building plastic products with an aim toward recyclability, but doing so requires more infrastructure investment, while fiber infrastructure already exists.
In August 2023, Amcor announced it would acquire Phoenix Flexibles in India, bringing the company’s total plants in the country to five.
In its 2024 sustainability report, Amcor indicated its PCR purchases reached 9.4% – or 209,000 metric tons – of total volume, nearing its 2025 goal of 10%.
Mergers trending throughout the sector
The announcement from the two global heavyweights is the latest of several high-profile mergers and acquisitions in the packaging sphere.
On Nov. 4, Berry Global completed the spin-off and merger with Glatfelter Corporation of Berry’s Health, Hygiene and Specialties nonwovens and films business, forming the Magnera Corporation. A press release called the new company “the largest nonwovens company in the world.”
Earlier in 2024, Berry divested two other divisions, in line with its plans to increase the share of consumer products from more than 70% to more than 80%.
Dow is buying mechanical PE recycling firm Circulus and selling its flexible packaging laminating adhesives business to specialty materials producer Arkema. TC Transcontinental is selling its industrial packaging operations to Hood Packaging, including two sites in North Carolina and California.
In paper fiber, Atlanta-based Westrock and Ireland’s Smurfit Kappa completed a long-awaited merger. North American giant International Paper is also finalizing its merger with European packaging firm DS Smith, with the deal expected to close during Q1 2025.