Berry spin-off to merge with Glatfelter

13 February 2024

US packaging producer Berry Global Group signed a definitive agreement with fellow US Glatfelter Corporation on 7 February for the spin-off and merger of the majority of Berry’s Health, Hygiene ad Specialties segment, including nonwovens and films ("HHNF”), with Glatfelter.

The merger reportedly aims to create a leading, publicly-traded company in the specialty materials industry.

According to a joint press release from the two US companies, Berry’s shareholders will get 90 per cent of the merged entity ("NewCo”), Glatfelter’s shareholders 10 per cent. The companies estimate the joint pro-forma sales of HHNF and Glatfelter at around $3.6bn, with the adjusted Ebitda at roughly $455m, based on the combined financial results for the last 12 months until December 2023 (Berry) and September 2023 (Glatfelter).

Review of strategic alternatives since last September

Berry announced a review of strategic alternatives for its Health, Hygiene and Specialities (HH&S) division in September 2023. The division includes nonwovens, speciality films and adhesive tapes for a wide spectrum of end-markets including healthcare, hygiene, consumer packaging, construction and industries. The announced spin-off of Berry’s HH&S business excludes the production of tapes.

The closing of the transaction is scheduled for the second half of 2024 and is subject to regulatory approvals as well as the approval of Glatfelter’s shareholders. The merged company will be renamed after closing, the press release adds. CEO of the new global player with 8,700 employees will be Curt Begle, who is currently president of Berry’s HH&S business.  

Berry Global employs more than 40,000 persons at over 250 sites. In the 2023 financial year, the US company generated pro-forma sales of $10.2bn and adjusted Ebitda of $1.8bn.

Glatfelter employs 2,980 persons globally and generated sales of around $1.5bn in 2022. The company operates 15 production sites spread across USA, Canada, Germany, France, Spain, UK and the Philippines.  

Source: Euwid