EVANSVILLE, Ind. — Berry Global Group Inc. announced that it has entered into a definitive agreement to sell its specialty tapes business to the private equity firm Nautic Partners LLC for a headline purchase price of approximately $540 million.
The tapes business is a franchise highly valued by its industrial customers. As a result, this separation is aligned with Berry’s broader strategy to transition the portfolio towards more consistent, higher growth consumer-oriented end markets and platforms.
Berry plans to use proceeds from the transaction to pay down outstanding debt at Berry. Adjusted for both the cash distribution received in November 2024 on close of Berry’s health, hygiene and specialties global nonwovens and films business spin-off, and the net cash proceeds expected on the sale of tapes, totaling $1.3 billion, Berry’s pro forma net debt as of Sept. 30 was approximately $5.9 billion (3.5x LTM net leverage).
The transaction is expected to be completed by the first half of calendar 2025, subject to customary closing conditions.
“Over the past year, Berry has undergone a significant transformation, completing the spin-off of our HHNF business, enhancing our product mix and optimizing our portfolio. The sale of tapes further supports these efforts and the continued focus on our high-growth consumer portfolio," said Berry CEO Kevin Kwilinski.
The proposed sale followed Berry's announcement of an agreement combine with Amcor in an all-stock transaction, which officials said would create a global leader in consumer and healthcare packaging solutions.
