They are paying around 11.5x EV/EBITDA using scrip capitalised at around 10x EV/EBITDA (although that doesn't preclude it from being EPS accretive given the dampening effect of non-operating items below the EBITDA line) .
While I don't know too much about Berry at this stage, from what I can see, it looks like it services market segments which are structurally faster-growing.
Trouble is, AMC is absorbing a lot of debt, which Berry carries (~US$8bn of Net Debt supported by around US$1.8bn of EBITDA, so 4.3x Net Debt-to-EBITDA), which means MergeCo will have Net Debt-to-EBITDA of around 3.6x.
This informs the lower dividend profile for the combined entity, because some balance sheet repair is going to have to occur.
It implies AMC is expected to be viewed as more of a growth stock than an income stock.
Which I personally prefer, but I know that there are many market participants who don't.
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