ASX-listed packaging giant Amcor is relocating its headquarters to the United States after it announced the $9.2 billion acquisition of Wisconsin-based rival Bemis.
Amcor, which spun off many of its Australian assets into Orora in 2013, announced it and Bemis would combine, giving existing Amcore and Bemis shareholders approximately 71% and 29% ownership of the company, respectively.
Amcor and Bemis combine for annual revenues of at least $17 billion, and will create the world’s largest packaging business, boasting roughly 35,000 employees.
The plan is to establish Amcor’s primary listing on the New York Stock Exchange, and to maintain a listing on the ASX, Amcor chief executive Ron Delia said.
“The strategic rationale for this combination and the financial benefits are highly compelling for both Amcor and Bemis shareholders,” Delia said on August 6.
“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.”
Delia said the transaction would give Amcor a stronger value proposition with the scale, breath and resources to unlock value from new opportunities in the packaging sector.
“There are an increasing number of opportunities arising for a leading packaging company to capitalize on shifting consumer needs, an evolving customer landscape and the need to provide responsible packaging solutions that protect the environment,” he said.
Meanwhile Bemis chief William F. Austen said the combination would be “transformational”.
“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 U.S. manufacturing base and strengths in material science and innovation,” he said.