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Berry Investigates Health Segment Separation

Published: August 10th, 2023
The packaging materials company has hired advisers to look at a spinoff or sale of its so-called nonwoven fabrics business, which represents the bulk of its health, hygiene and specialties segment, The Deal has learned.

Plastics packaging and engineered materials maker Berry Global Group Inc. (BERY) is holding discussions over what could amount to a $3 billion asset sale or spinoff, The Deal has learned.

Evansville, Ind.-based Berry Global has retained Citigroup Inc. to advise on a potential separation involving its so-called nonwoven fabrics business, four industry sources said. In the long term, Berry Global may also be considering other, smaller asset sales as well, a fifth industry source said.

Berry Global’s nonwoven fabrics 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 business represents the bulk of Berry Global’s health, hygiene and specialties segment, which on a whole generated about $364 million in Ebitda on $2.87 billion in sales for the 12-month period ended March 31, for about a 12.7% Ebitda margin. Berry is thought to be considering a spinoff or sale of a material portion of the health, hygiene and specialties segment, if not the entire segment, two of the industry sources suggested.

The talks are exploratory at this stage, a second of the people said, though a third of the sources said discussions could be advanced with certain parties. Berry Global may choose to sell a smaller portion of assets or retain them altogether depending on the feedback it receives from the market and its advisers, the people cautioned.

Streamlining Portfolio Under Activists’ Watch

Berry Global picked up the bulk of its nonwoven fabrics business in 2015 through the $2.45 billion purchase of….

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Berry Announces Health Segment Review

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Published: September 8th, 2023
The manufacturer of plastics packaging and engineered materials has launched a strategic review of its nonwoven fabrics business, which The Deal revealed it was considering selling in July.