Packaging manufacturer Amcor is looking to become the global leader in consumer packaging after it took over US company Bemis in a $9.2 billion deal.
The deal between Melbourne-based Amcor and the Wisconsin-based Bemis will create a business with a market capitalisation of $23 billion and revenues in excess of $17 billion.
It will also firmly entrench Amcor’s position as the world biggest listed packaging business with 35,000 employees around the globe.
Both businesses have long histories dating back more than 150 years.
The $18 billion Amcor manufacturers flexible and rigid plastic packaging for food, drinks and cigarettes.
It employs 35,000 workers across 200 plants in 40 countries worldwide, and has risen to become one of the largest consumer packaging companies in the world.
Bemis employs about 16,000 people and runs 57 plants globally, also supplying flexible and rigid plastic packaging. Its customers include major consumer products companies such as Unilever and and Johnson & Johnson.
The all-share deal will see Amcor and Bremis shareholders own 71 per cent and 29 per cent of the company respectively.
Amcor’s CEO, Ron Delia, said the deal creates “highly compelling” financial benefits for both Amcor and Bemis shareholders.
“Amcor has identified flexible packaging in the Americas as a key growth priority and this transaction delivers a step change in that region,” he said.
Bemis’ President and CEO, William F. Austen, said: “The combination of Bemis and Amcor is transformational, bringing together two highly complementary organisations to create a global leader in consumer packaging.”