Berry Global completes sale of Specialty Tapes business

Published 06/02/2025, 23:49
Berry Global completes sale of Specialty Tapes business

EVANSVILLE, IN - Berry Global Group, Inc. (NYSE:BERY), an $8.27 billion market cap packaging solutions provider, announced on Monday that it has finalized the sale of its Specialty Tapes business to Nautic Partners, LLC. The divestiture of the Tapes Business is part of Berry Global’s strategic efforts to streamline its portfolio. According to InvestingPro analysis, the company maintains a strong financial health score of 2.88 (GOOD), suggesting solid positioning for its strategic initiatives.

The transaction, which was completed on February 3, 2025, means that the Tapes Business will no longer be part of Berry Global’s controlled group. This sale is significant as it affects the company’s pension plans. Berry Global sponsors the Berry Global, Inc. Defined Benefit Pension Plan, with the company’s EIN being 43-2107725, and the plan number is 001. Additionally, Kerr Group, Inc., within Berry Global’s controlled group, sponsors the Kerr Group, Inc. Retirement Income Plan, with an EIN of 95-0898810 and plan number 001.

At present, Berry Global is the sole contributing sponsor for both the Berry Plan and the Kerr Group Plan. This sale will not change the current status of Berry Global as the only contributing sponsor for these pension plans.

The specifics of the financial terms have not been disclosed. This move is part of Berry Global’s larger strategy to optimize its business operations and focus on core areas of growth. Berry Global, headquartered in Evansville, Indiana, is a leading provider of diversified packaging solutions and plastic products.

Investors and stakeholders are keeping a close eye on Berry Global’s strategic decisions, as the company continues to adapt to the evolving market demands. The information regarding this transaction is based on a press release statement filed with the SEC.

In other recent news, Berry Global Group has announced a quarterly cash dividend of $0.31 per share for its stockholders, demonstrating the company’s commitment to delivering value to its shareholders through consistent dividends. In a significant development, Berry Global has also entered into a merger agreement with Amcor (NYSE:AMCR), a global packaging company. The agreement stipulates that Berry Global shareholders will receive 7.25 shares of Amcor for each share of Berry Global they own.

This merger is anticipated to be finalized by mid-2025, pending the necessary regulatory approvals. Analyst firms have provided various assessments of the deal. Citi has resumed coverage on Berry Global with a Neutral rating and a price target of $76.00. JPMorgan reinstated coverage on Berry Global, assigning an Overweight rating and establishing a price target of $76.00, while RBC Capital Markets adjusted its outlook on Berry Global, increasing the price target to $73.00. Baird increased its price target on shares of Berry Global to $70.00, maintaining a Neutral rating on the stock.

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