Berry Global Reviews 'Strategic Alternatives' for Health, Hygiene Business
Berry Global Group Inc. announced today the initiation of a formal process to evaluate strategic alternatives for its Health, Hygiene, and Specialties segment (HH&S). HH&S supplies nonwovens, specialty films, and tapes to a range of end markets, including healthcare, hygiene, consumer, building and construction, and industrials.
Options for HH&S under consideration by Berry include, but are not limited to, a sale, strategic partnership or joint venture, spin-off to shareholders, or other separation transaction for some or all of the businesses within HH&S.
The company said that it expects current members of the HH&S leadership team to continue to lead the business in any anticipated outcome.
“An ongoing objective of the Berry board is to constantly look for ways to drive long-term value for our stakeholders, which includes continuously evaluating our portfolio to ensure the company is best positioned to execute on its strategic objectives,” said Tom Salmon, Berry Chairman and Chief Executive Officer. “Following an extensive analysis by the board and management team, with support from our incoming CEO Kevin Kwilinski, we have decided to explore strategic alternatives for the HH&S businesses as we continue to seek to enhance value through strategic portfolio management. As always, we will be disciplined throughout this process and will only take actions that we believe are in the best interest of the company and our stakeholders.”
Berry has not set a deadline or timetable for completion of the strategic alternatives process. There can be no assurance any proposal will be made or accepted, any agreement will be executed, or any transaction will be consummated, in connection with this review, added the company.
The board has retained Citigroup Global Markets Inc. and Wells Fargo Securities LLC as its financial advisors, and Bryan Cave Leighton Paisner LLP as its legal advisor to assist with the strategic alternatives process.
In other recent news, Berry Global announced last month that it would be shutting down 20 facilities.