Yahoo Finance Berry Global (BERY) Gets Regulatory Clearance for HHNF Spin-Off
Berry Global Group, Inc. BERY recently announced that it has achieved an important regulatory milestone regarding the proposed tax-free spin-off and merger of the majority of its Health, Hygiene and Specialties segment with Glatfelter Corporation GLT. The majority of Berry Global’s Health, Hygiene and Specialties segment comprises the Global Nonwovens and Films business (“HHNF”), which will be merged with Glatfelter to form a new entity known as NewCo.
In addition to the completion of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, both companies have also received all other approvals and clearances under competition and foreign direct investment laws required for the closure of the transaction.
Based in Charlotte, NC, Glatfelter is engaged in manufacturing and selling engineered materials globally. The company offers food and beverage filtration materials for single-serve coffee and tea products, wallcover base materials for wallpaper manufacturers, household and commercial flooring, and other applications. It has 15 manufacturing sites located in the United States, Canada, Germany, the United Kingdom, France, Spain and the Philippines.
The $3.6 billion deal was announced in February 2024. NewCo is poised to lead the global specialty materials industry, catering to major brand owners worldwide across diverse end markets, driven by favorable long-term growth opportunities. The transaction is anticipated to be completed in the second half of 2024, subject to the approval of Glatfelter shareholders.
Zacks Rank and Price Performance
Berry Global currently carries a Zacks Rank #3 (Hold). Shares of the company have lost 10.2% in a year against the industry‘s 5.4% growth.
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Berry Global is benefiting from investments in the latest equipment technologies, advantaged film development and design for circularity. Cost-reduction actions, including structural plant closures and labor management, are expected to aid the company’s margin performance. However, BERY is experiencing weakness in its Consumer Packaging International unit due to reduced selling prices arising from the pass-through of lower resin prices. Softness in North American transportation and shrink film markets are affecting the Flexibles unit’s performance.
Stocks to Consider
Some better-ranked companies from the Industrial Products sector are discussed below:
Applied Industrial Technologies, Inc. AIT presently sports a Zacks Rank #1 (Strong Buy). It has a trailing four-quarter average earnings surprise of 8.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for AIT’s fiscal 2024 earnings has improved 0.9% in the past 60 days. The stock has gained 10.9% in the year-to-date period.
Belden Inc. BDC presently carries a Zacks Rank #2 (Buy) and has a trailing four-quarter earnings surprise of 14.7%, on average.
The consensus estimate for BDC’s 2024 earnings has increased 8.3% in the past 60 days. Shares of Belden have gained 20.6% in the year-to-date period.
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Applied Industrial Technologies, Inc. (AIT) : Free Stock Analysis Report
Belden Inc (BDC) : Free Stock Analysis Report
Glatfelter Corporation (GLT) : Free Stock Analysis Report
Berry Global Group, Inc. (BERY) : Free Stock Analysis Report
