Berry Global is to spin-off its Health, Hygiene and Specialties (HHNF) business and merge it with Glatfelter, to create a new  publicly-traded company.

The as-yet-unnamed new company will become the largest manufacturer of nonwoven fabrics globally, with an extremely wide range of proprietary technologies, including both polymer and fibre-based solutions. With significant geographic diversification and a presence in all major markets, it will have a strong focus on healthcare and hygiene.

“This announcement is the culmination of a comprehensive review of strategic alternatives to determine the value-maximising path forward for Berry shareholders,” said Berry 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 global packaging solutions. 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 uniting of our organisations creates a premier nonwovens supplier and a global leader in speciality materials,” added Thomas Fahnemann , Glatfelter’s president and CEO. “The combined company will have the scale to accelerate innovation and leverage intellectual property over a large worldwide commercial platform.”

Berry had sales of approximately $10.2 billion in the year to December 30, 2023, and will now change the name of its Engineered Materials segment to Flexibles.

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.

“I am humbled and honoured to be trusted as the leader of this new global enterprise and its 8,700 skilled and dedicated team members,” Begle said. “This announcement is the first step in creating a pure-play leader in nonwovens and speciality materials well-positioned in growing, global markets. We will increase the combined company’s relevance as a supplier of choice through product innovation, superior service and reliability.”

Berry shareholders will own 90% of the new company’s common shares on completion of the transaction, with Glatfelter shareholders owning the remaining 10%

Closing is expected to occur in the second half of 2024, subject to various customary closing conditions.

www.glatfelter.com

www.berryglobal.com