Berry Global to Sell Specialty Tapes Business to Nautic Partners for $540 Million

Nov. 26, 2024 - Berry Global Group, Inc. (NYSE:BERY) 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, which is subject to a number of closing adjustments.

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 ("HHNF") 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 September 30, 2024 was approximately $5.9 billion (3.5x LTM net leverage).

According to Berry, the Specialty 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.

"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," said Kevin Kwilinski, CEO of Berry. "The sale of Tapes further supports these efforts and the continued focus on our high-growth consumer portfolio."

The transaction is expected to complete by the first half of calendar 2025, subject to customary closing conditions.

About Nautic Partners
Nautic Partners is a Providence, Rhode Island-based middle-market private equity firm that focuses its expertise and market knowledge on sub-verticals within three sectors: Healthcare, Industrials and Services.

Berry is a global leader in innovative packaging solutions.

SOURCE: Berry Global Group, Inc.