Amcor’s Sweet Deal: Acquiring Berry After Strategic Spin – Merger Arbitrage Mondays

Berry Global Group, Inc. (BERY): $71.71

Market Cap: $8.25 B

Deal Size: $8.43 B

Earlier this month, Berry Global completed the spin-off of its health and hygiene division, merging it with Galtfelter in a tax-efficient Reverse Morris Trust transaction to form a new company, Magnera (MAGN). Just days later, Switzerland-based Amcor (AMCR) announced a merger agreement to acquire Berry in an all-stock deal valued at $8.43 billion, including debt. The combined company will establish a strong foothold in the consumer and healthcare packaging sectors.

Under the terms of the agreement, Berry shareholders will receive 7.25 Amcor shares for each Berry share, resulting in Amcor and Berry shareholders owning approximately 63% and 37% of the merged company, respectively. This values Berry’s common stock at $73.59 per share, a premium of 9.75%.

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