08.02.24
In the third quarter of 2024, Berry Global’s net sales decreased 2% to $3.2 billion as the pass-through of lower resin prices had a 3% negative impact which was partially offset by organic volume growth of 2%, which was in line with the company’s expectations, as all four operating segments delivered low-single digit volume growth.
In the Health, Hygiene & Specialties segment, net sales decreased by 2% totaling $647 million. The decline was primarily due to lower selling prices partially offset by organic volume growth of 2%. Notably, the surgical suite, hard-surface disinfectant wipe, and adult incontinence markets delivered solid volume growth.
In February, the company announced plans for a spin-off of the majority of its HH&S segment to include its global nonwovens and films business, which is then to be merged with Glatfelter Corporation (“GLT”) to create a global leader in specialty materials. Upon the completion of the transaction, Berry shareholders are expected to own approximately 90% of the newly combined company. The transaction valued the combined company at $3.6 billion on an enterprise value basis. In June, the Company announced that, in addition to previously achieving a regulatory milestone with the expiration of the required waiting period under the Hart-Scott-Rodino (HSR) Antitrust Improvements Act, the parties received all other approvals and clearances under competition and foreign direct investment laws which were conditions to the consummation of the transaction. The transaction is subject to further certain customary closing conditions including, but not limited to, approval by GLT shareholders and the effectiveness of related registration statements.
“This announcement is the culmination of a comprehensive review to determine the highest value alternative for Berry shareholders. We believe these two businesses can drive significant value for their respective stakeholders with more focused portfolios, positioning each for greater success. Berry will now become a pure-play leading supplier of innovative, sustainable global packaging solutions and we believe this focus will result in an even more predictable, stable earnings and growth profile for Berry. This proposed transaction is a significant step in the optimization of our portfolio and allows Berry’s management team to be one hundred percent laser-focused on driving consistent long-term growth with a more simplified and aligned portfolio,” states Kevin Kwilinski, Berry’s CEO.
In July, Berry’s Health, Hygiene and Specialties Global Nonwovens and Films (“HHNF”) business and Glatfelter Corporation progressed further with the creation of the Magnera brand. Curt Begle, president of Berry’s Health Hygiene & Specialties Division, who will lead Magnera as CEO, says, “Magnera’s purpose is to better the world with new possibilities made real. By continuously co-creating and innovating with our partners, we will develop original material solutions that make a brighter future possible. With a breadth of technologies and a passion for what we create, Magnera’s solutions will solve end-users’ problems, every day.”
In the Health, Hygiene & Specialties segment, net sales decreased by 2% totaling $647 million. The decline was primarily due to lower selling prices partially offset by organic volume growth of 2%. Notably, the surgical suite, hard-surface disinfectant wipe, and adult incontinence markets delivered solid volume growth.
In February, the company announced plans for a spin-off of the majority of its HH&S segment to include its global nonwovens and films business, which is then to be merged with Glatfelter Corporation (“GLT”) to create a global leader in specialty materials. Upon the completion of the transaction, Berry shareholders are expected to own approximately 90% of the newly combined company. The transaction valued the combined company at $3.6 billion on an enterprise value basis. In June, the Company announced that, in addition to previously achieving a regulatory milestone with the expiration of the required waiting period under the Hart-Scott-Rodino (HSR) Antitrust Improvements Act, the parties received all other approvals and clearances under competition and foreign direct investment laws which were conditions to the consummation of the transaction. The transaction is subject to further certain customary closing conditions including, but not limited to, approval by GLT shareholders and the effectiveness of related registration statements.
“This announcement is the culmination of a comprehensive review to determine the highest value alternative for Berry shareholders. We believe these two businesses can drive significant value for their respective stakeholders with more focused portfolios, positioning each for greater success. Berry will now become a pure-play leading supplier of innovative, sustainable global packaging solutions and we believe this focus will result in an even more predictable, stable earnings and growth profile for Berry. This proposed transaction is a significant step in the optimization of our portfolio and allows Berry’s management team to be one hundred percent laser-focused on driving consistent long-term growth with a more simplified and aligned portfolio,” states Kevin Kwilinski, Berry’s CEO.
In July, Berry’s Health, Hygiene and Specialties Global Nonwovens and Films (“HHNF”) business and Glatfelter Corporation progressed further with the creation of the Magnera brand. Curt Begle, president of Berry’s Health Hygiene & Specialties Division, who will lead Magnera as CEO, says, “Magnera’s purpose is to better the world with new possibilities made real. By continuously co-creating and innovating with our partners, we will develop original material solutions that make a brighter future possible. With a breadth of technologies and a passion for what we create, Magnera’s solutions will solve end-users’ problems, every day.”
