The combined firm will play a crucial role in consumer packaging segment, in addition to providing significant value for shareholders, customers and employees.
As per terms of the deal, Amcor shareholders will own 71% stake in the combined company, while the remaining 29% interest will be owned by the Bemis shareholders.
Bemis president and CEO William Austen said: “The combination of Bemis and Amcor is transformational, bringing together two highly complementary organizations to create a global leader in consumer packaging.”
Based in Neenah of Wisconsin, Bemis provides flexible and rigid plastic packaging solutions for customers in the food, consumer products, healthcare and pharmaceutical sectors.
The company has advanced capabilities in polymer chemistry, film extrusion, coating and laminating, printing, and converting.
Bemis, which employs around 16,000 people across the globe, reported net sales of around $4bn in 2017.
With sales of about US$3.5bn from around 30 emerging markets, the combined firm will have a balanced and profitable exposure to emerging markets.
The combined firm will benefit from Amcor’s presence in Europe, Asia and Latin America, and Bemis’ presence in North America and Brazil.
The combined firm will also have increased exposure to major end markets and product segments, including protein and healthcare packaging, barrier films and foils.
Subject to satisfaction of the conditions, the deal is expected to be completed in the first quarter of 2019.
Amcor CEO Ron Delia said: “The strategic rationale for this combination and the financial benefits are highly compelling for both Amcor and Bemis shareholders.
“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.”
Amcor also supplies a range of rigid and flexible packaging products to the customers in the food, beverage, healthcare, personal care and other fast moving consumer end markets.
With about 35,000 employees, the company operates around 195 sites in more than 40 countries.
