Glatfelter Announces Strategic Merger and Subsidiary Creation

Glatfelter (GLT) has released an update to notify the public and investors about an entry into a material definitive agreement.

Glatfelter Corporation has initiated a complex transaction involving a series of mergers and the creation of a subsidiary, Spinco, to facilitate the separation and transfer of Berry Global Group’s nonwovens and hygiene films business. The strategic move will result in Berry stockholders owning 90% of Glatfelter post-merger, with existing Glatfelter shareholders retaining a 10% stake. The transactions are designed to be tax-free for U.S. federal income tax purposes and are contingent upon various conditions, including regulatory approvals and a favorable IRS ruling. This restructuring is part of a Reverse Morris Trust deal, aiming to streamline operations and unlock shareholder value in a tax-efficient manner.

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For a comprehensive understanding of the announcement, you can read the full document here.