Berry Global completes spinoff; merger creates new public company
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Evansville-based plastics manufacturer Berry Global Group Inc. this week announced the completion of the spinoff of its Health, Hygiene and Specialties Global Nonwovens and Films business.
The business has also merged with Glatfelter Corp. in Charlotte, North Carolina to create a new, publicly traded company, Magnera Corp.
Plans for the spinoff were first announced by Berry Global in February, and the company said the merger creates the largest nonwovens company in the world.
The newly created company operates 46 manufacturing facilities around the world that produce a variety of products, including adult incontinence, baby care, feminine hygiene, food and beverage, home and health care, infrastructure and wipes.
Berry CEO Kevin Kwilinski said the company is excited to complete the transaction.
“With this move to optimize our portfolio, we solidify our position as a global leader of consumer-focused packaging solutions while enhancing the stability of our earnings, free cash flow and growth,” Kwilinski said in a news release. “We are confident that employees transferring to Magnera will benefit from the new company’s strong leadership and focused capabilities, and we are grateful for their contributions.”
Berry did not specify how many employees would be transitioning to Magnera, but Magnera noted that it has more than 9,000 employees worldwide. Multiple requests for more information from Inside INdiana Business were not returned.
Magnera CEO Curt Begle said the new company’s name represents the start of a “magnificent new era” in the specialty materials market.
“The merger of Berry’s HHNF Business and Glatfelter forms a powerful, differentiated global leader committed to uniting cutting-edge technologies, strengthening partnerships with the world’s leading brands and expanding our global reach to serve fast-growing markets and highly profitable niches,” Begle said. “This strategic combination enhances our ability to drive innovation and deliver unique solutions positioning Magnera to better serve our 1,000+ customers.”
Magnera began trading on the New York Stock Exchange under the ticker symbol MAGN on Tuesday.
The move was completed through a Reverse Morris Trust transaction, whereby each Berry stockholder received 0.276305 shares of Magnera stock for each share of Berry common stock owned as of Nov. 1. Berry stockholders received 90% of the outstanding shares of Magnera, and current Glatfelter shareholders retained the other 10%.
Magnera does not have any operations in Indiana, according to the company’s website.