Berry Global And Glatfelter Plan For Tax-Free Spin-Off And Merger Of Berry's Health, Hygiene And Specialties Global Nonwovens And Films Business With Glatfelter
Portfolio Pulse from Benzinga Newsdesk
Berry Global and Glatfelter have announced a tax-free spin-off and merger of Berry's Health, Hygiene, and Specialties Global Nonwovens and Films Business with Glatfelter. The transaction values the combined company at $3.6 billion, with pro forma revenue of approximately $3.6 billion and adjusted EBITDA of about $455 million. Post-transaction, Berry and Glatfelter shareholders will own 90% and 10% of the new company, respectively, with Berry receiving an approximate net $1 billion cash distribution at closing.
February 07, 2024 | 12:13 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
Berry Global is entering a significant merger with Glatfelter, spinning off its nonwovens and films business. Berry shareholders will own 90% of the new entity, and the company will receive a $1 billion cash distribution.
The merger significantly enhances Berry Global's financial position by providing a substantial cash distribution and a majority stake in the newly formed company. This strategic move is likely to be viewed positively by investors, given the scale and financial metrics of the combined entity.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Glatfelter is merging with a division of Berry Global, resulting in a combined company valued at $3.6 billion. Glatfelter shareholders will own 10% of the new company.
The merger with Berry Global's nonwovens and films business presents a growth opportunity for Glatfelter, despite the smaller ownership stake. The combined company's scale and financial strength are likely to benefit Glatfelter's long-term strategic positioning and market competitiveness.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80