Berry Global Group Inc. is weighing options for its nonwoven fabrics business, including a possible sale that could fetch as much as $2 billion, people with knowledge of the matter said.
(Bloomberg) — Berry Global Group Inc. is weighing options for its nonwoven fabrics business, including a possible sale that could fetch as much as $2 billion, people with knowledge of the matter said.
The US packaging company is speaking to potential advisers about its Nonwovens & Components unit and is considering both an outright divestment and bringing in a strategic partner, according to the people.
Deliberations are ongoing and no final decisions have been made, they said, asking not to be identified discussing confidential information. A representative for Berry declined to comment.
Berry’s nonwovens business sits within its Health, Hygiene and Specialties division and makes fabrics used by industries ranging from baby care to construction. Its brands include Endura and Reemay.
Evansville, Indiana-based Berry announced in February that its Chief Executive Officer, Thomas E Salmon, would be retiring at the end of 2023. Salmon is a serial dealmaker, who, in recent years, has overseen a multibillion-dollar acquisition of UK peer RPC Group Plc. and sales of the Synergy Packaging and Promens Zlin businesses.
Berry is also exploring the sale of other, small and non-core assets, the people said. The timing of any divestments may be impacted by the CEO change, some of the people said.
Shares in Berry have risen about 8% over the last 12 months, giving the company a market value of $7.5 billion.
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