The Australian company will have a greater access to food packaging, thanks to the deal at a time when consumer preferences are changing, and there is a move towards snacking and environmental concerns.
Amcor said it will maintain a “critical presence” in Wisconsin, where Bemis is headquartered.
“We’re very happy with our portfolio as it currently sits, and this Bemis transaction just bolters that portfolio. It’s the perfect fit for our flexible packaging footprint,” Ron Delia, CEO, Amcor, told Reuters this week.
He added the acquisition is ‘at the right time for both companies’ as flexible packaging in the Americas is a key growth area.
“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 that protects the environment,” said Delia.
After completion of the transaction, Amcor will have a global flexible packaging footprint across key geographies; a larger, more balanced and more profitable emerging markets business, with sales of some $3.5bn from around 30 emerging markets.
It will have increased exposure to attractive end markets and product segments, including protein and healthcare packaging and technologies in barrier films and foils.
Amcor has pledged to develop all recyclable or reusable packaging products by 2025 and, through the merger, will create the holding company New Amcor, which will be tax resident in the UK.
Upon completion of the transaction, New Amcor’s Board is expected to comprise 11 members, eight of whom are current Amcor directors, and three are current Bemis directors.
Amcor’s current chairman Graeme Liebelt and current CEO Ron Delia will continue in these roles after the transaction, and Delia will continue to serve as the only executive director on the Board.
New Amcor will maintain ‘a critical presence in Wisconsin’ and other key Bemis locations.
"The combination of Bemis and Amcor is transformational, bringing together two highly complementary organizations to create a global leader in consumer packaging,” said William Austen, president/CEO, Bemis.
“We believe this combination, which is an exciting growth storyfor both companies, will benefit all stakeholders.”