WAKEFIELD – Berry Global is considering a possible sale of its nonwoven fabrics business that could fetch as much as $2 billion, according to unnamed sources cited in a report by Bloomberg.
The company is reported to be speaking to potential advisers about its Nonwovens and Components unit and is considering both an outright divestment and bringing in a strategic partner.
Berry’s nonwovens business – the largest in the world following multiple acquisitions over a number of years of companies such as Avintiv, Clopay and Dounar – sits within its Health, Hygiene and Specialties division and supplies fabrics used by industries ranging from baby care to construction, with well-known brands including Endura and Reemay.
Evansville, Indiana-based Berry announced in February that its CEO, Thomas E Salmon, would be retiring at the end of 2023. Salmon is a serial dealmaker, who, in recent years, has overseen the multi-billion-dollar acquisition of UK-headquartered RPC Group sales of the Synergy Packaging and Promens Zlin businesses.
Berry is also exploring the sale of other small and non-core assets and the timing of any divestments may be impacted by the CEO change, it is believed.
Shares in Berry have risen about 8% over the last 12 months, giving the company a market value of $7.5 billion.
