USA – Berry Global Group has announced a definitive agreement to sell its specialty tapes business to private equity firm Nautic Partners for approximately US$540 million.
The move is part of Berry’s broader strategy to shift its focus toward consumer-oriented markets, targeting consistent and higher growth. Proceeds from the sale will be used to reduce the company’s outstanding debt.
Following this transaction, along with the earlier spin-off of its Health, Hygiene, and Specialties (HHNF) business, Berry’s pro forma net debt as of September 30, 2024, stands at approximately US$5.9 billion.
The deal is expected to close in the first half of 2025, pending customary regulatory approvals and closing conditions.
Berry CEO Kevin Kwilinski emphasized the strategic importance of the sale, noting, “Over the past year, Berry has undergone a significant transformation, enhancing our product mix and optimizing our portfolio. The sale of the tapes division further supports our focus on high-growth consumer markets.”
Berry’s exclusive financial advisor is Goldman Sachs, and Bryan Cave Leighton Paisner provides legal counsel. McDermott, Will & Emery advises Nautic Partners, and Santander acts as its financial advisor.
Acquisition by Amcor
This announcement follows Berry’s recent agreement to be acquired by Amcor in a landmark US$8.4 billion all-stock deal.
Under the terms, Berry shareholders will receive 7.25 Amcor shares for each Berry share, valuing Berry’s stock at US$73.59 per share.
The combined entity will have a 63% ownership stake for Amcor shareholders and 37% for Berry shareholders.
The merger, unanimously approved by both boards, is expected to close by mid-2025, pending shareholder and regulatory approvals.
The new company will operate as Amcor plc, with Peter Konieczny as CEO and Graeme Liebelt as chairman.
While Amcor’s global headquarters will remain in Zurich, Switzerland, the combined company will retain a strong presence in Evansville, Indiana.
Amcor anticipates US$650 million in cost savings, growth synergies, and financial benefits within three years of the merger.
The integration will prioritize higher-margin sectors, including healthcare, protein, pet food, and beauty.
“This combination marks a transformative step forward, driving significant improvements in free cash flow, earnings growth, and shareholder value creation,” said Konieczny.
The moves collectively underscore Berry’s strategic shift and commitment to enhancing its portfolio, positioning the company for long-term success in high-growth markets.
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