Berry Global Group (BERY) has released an update to notify the public and investors about an entry into a material definitive agreement.
Berry Global Group, Inc. is executing a strategic transaction to spin off its Health, Hygiene, and Specialties segment to a newly formed subsidiary, Spinco, which will then merge with Glatfelter Corporation. The deal involves transferring assets and liabilities associated with the segment to Spinco, followed by Berry distributing 100% of Spinco’s common stock to its shareholders. Subsequently, Spinco will become a wholly-owned subsidiary of Glatfelter through a two-step merger process. The transaction is designed to be tax-free for U.S. federal income tax purposes and is contingent on various approvals and conditions. Berry’s shareholders will own a significant majority of Glatfelter’s stock post-transaction, marking a notable change in ownership structure.
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For a comprehensive understanding of the announcement, you can read the full document here.