Berry, Glatfelter to create global specialty materials supplier

In a US$3.6-billion deal, plastics processor Berry Global Group Inc. and material supplier Glatfelter have entered into definitive agreements for Berry to spin-off and merge the majority of its Health, Hygiene and Specialties segment to include its Global Nonwovens and Films business (HHNF) with Glatfelter, to create a publicly traded company in the specialty materials industry.

The as-yet-unnamed company will provide major global brand owners with polymer- and fibre-based solutions, Berry officials said.

“This announcement is the culmination of a comprehensive review of strategic alternatives to determine the value-maximizing path forward for Berry shareholders,” said Berry Group CEO Kevin Kwilinski. “We believe these two businesses, in combination, can drive significant value for shareholders with complementary portfolios, positioning each for greater success. Following completion of the transaction, Berry will become a pure-play provider of innovative, sustainable global packaging solutions, which we believe will deliver even more predictable earnings growth for Berry shareholders. Additionally, we believe HHNF in combination with Glatfelter will thrive as an independent company that is positioned to drive long-term growth with its global brand-owner customers.”

The new company, which will be renamed and rebranded by transaction close, will be led by Curt Begle, Berry’s current president of HH&S, who will serve as CEO. Additional members of the combined company’s senior management team will be announced at a later date.

Prior to the spin-off, Evansville, Ind., Berry was divided into four main divisions: Consumer Packaging International, Consumer Packaging North America, HH&S, and Engineered Materials.