Bemis to Be Acquired by Australian Rival Amcor in $6.8 Billion Deal

Bemis Company (BMS) is poised to be taken over by Australian rival Amcor in an all-stock deal valued at $6.8 billion that will see Amcor list shares on the New York Stock Exchange.

Shareholders of Neenah, Wisconsin-based Bemis will own 29% of the combined consumer packaging firm and Amcor investors will take 71%, the companies said in a statement on Monday.

With a combined revenue of $13 billion, the tie-up brings together Bemis’ manufacturing base in the US and “leading positions” in North America and Brazil with Amcor’s prominence in Europe, Asia and Latin America, the companies said.

“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,” said William Austen, Bemis’ chief executive officer.

The companies said the deal will bring pre-tax annual cost synergies of about $180 million by the end of the third year and double digit pro-forma earnings per share accretion, including the cost synergies.

Shareholders have yet to approve the deal. Austen said investors are getting “a significant premium in this transaction,” although the stock was slightly lower in Monday’s session. Regulatory approval is also needed for the deal, which is expected to close in the first quarter of 2019, the companies said.

The new Amcor will have a primary listing on the NYSE with an estimated market capitalization of about $17 billion. It will maintain a listing on the Australian Securities Exchange.