Berry Global Group Inc. (BERY) announced Thursday, Sept. 8, that it has launched a process to evaluate strategic alternatives for its health, hygiene and specialties segment.
Evansville, Ind.-based Berry Global said that it will be considering various alternatives to maximize shareholder value. It could include, but is not limited to, a “sale, strategic partnership or joint venture, spinoff to shareholders or other separation transaction for some or all of the businesses within the business segment.”
In July, The Deal reported that the plastics packaging and engineered materials maker was working with Citigroup Global Markets Inc. on a potential separation of its nonwoven fabrics business, which effectively represents the majority of its health, hygiene and specialties segment.
Berry Global’s health, hygiene and specialties segment generated about $340 million in operating Ebitda on $2.74 billion in sales for the 12-month period ended June 30, for about a 12.4% Ebitda margin.
Berry said Thursday that it expects present members of HH&S leadership team to “continue leading the business in any anticipated outcome.”
Along with Citi, Berry Global said its board had engaged Wells Fargo Securities LLC for financial advice and Bryan Cave Leighton Paisner LLP for legal counsel. Louis C. Spelios leads the BCLP team.
Berry Global health, hygiene and specialties segment business produces a variety of materials from spun plastic fibers that go into everything from pet pads and diapers to hard surface disinfectant wipes and filtration devices. The unit also makes materials that can be used in healthcare fabrics and masks, as well as specialty tapes and films.
The company acquired much of its nonwoven fabrics business in 2015 through the $2.45 billion purchase of Avintiv Inc. from Blackstone Inc. (BX).
Berry Global said it has not set any deadline for completing the strategic alternatives process, and it doesn’t intend to make further announcements regarding the review until it secures a deal or otherwise deems it necessary.
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