Berry Global to sell off Specialty Tapes business for $540 million
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Evansville-based Berry Global Group Inc. is divesting another business unit as it prepares to be acquired by a Swiss packaging company.
The plastics manufacturer said Tuesday it has reached an agreement to sell its Specialty Tapes business to Nautic Partners, a private equity firm in Providence, Rhode Island, in a $540 million deal.
The business segment specializes in pressure-sensitive tapes and adhesives that are used in a variety of applications and markets, according to Berry’s website.
The company said in a news release that the sale is aligned with a broader strategy to “transition the portfolio towards more consistent, higher growth consumer-oriented end markets and platforms.”
“Over the past year, Berry has undergone a significant transformation, completing the spin-off of our HHNF business, enhancing our product mix and optimizing our portfolio,” CEO Kevin Kwilinski said in the release. “The sale of Tapes further supports these efforts and the continued focus on our high-growth consumer portfolio.”
Berry Global did not specify how many employees work in the Specialty Tapes division or if any jobs would be negatively affected by the deal.
The agreement comes less than a month after Berry announced it had completed the spinoff of its Health, Hygiene and Specialties Global Nonwovens and Films business. Just over two weeks later, Berry announced it is being acquired by Switzerland-based Amcor plc in an $8.4 billion deal.
Berry said it plans to use the proceeds of the sale of the Specialty Tapes business to pay down debt. The deal is expected to close in the first half of 2025, pending customary closing conditions.