Berry Global Group, Inc. has announced the successful completion of the merger between Berry’s Health, Hygiene, and Specialties Global Nonwovens and Films business and Glatfelter Corporation. Resulting in the creation of Magnera Corporation, the largest nonwoven company in the world, with a broad platform of solutions for the specialty materials industry.
“We are excited about the completion of this 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. 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.”
Kevin Kwilinski, Chief Executive Officer, Berry
Under the previously disclosed terms of the transaction, on November 4, 2024, Berry completed the separation of the HHNF Business through a spin-off of all the outstanding shares of its wholly-owned subsidiary that owned the HHNF Business to our stockholders of record as of the close of business on November 1, 2024 using a pro rata distribution. Spinco was then merged into a wholly owned subsidiary of Magnera.
As a result of the transaction, which was structured as a Reverse Morris Trust transaction, each Berry stockholder received 0.276305 shares of Magnera concerning each share of Berry common stock owned as of November 1, 2024 (which reflects the 1-for-13 reverse stock split effected by Magnera on November 4, 2024). In addition to their new shares of Magnera, Berry stockholders continue to hold the same number of shares of Berry they held before the transaction. As of the completion of the merger, Berry stockholders received 90% of the outstanding shares of Magnera on a fully diluted basis, and current Glatfelter shareholders retained 10% of the outstanding shares of Magnera on a fully diluted basis.
Berry Global Group, creates innovative packaging solutions that make life better for people and the planet. By leveraging its unmatched global capabilities, sustainability leadership, and deep innovation expertise Berry serves customers of all sizes around the world. The challenges Berry solves and the innovations pioneers benefit to the customers at every stage of their journey.