Berry (US:BERY) ZACKS·2024-06-26 17:35Core Viewpoint - Berry Global Group, Inc. has reached a significant regulatory milestone for the tax-free spin-off and merger of its Health, Hygiene and Specialties segment with Glatfelter Corporation, forming a new entity called NewCo [1][8]. Company Overview - Glatfelter Corporation, based in Charlotte, NC, manufactures and sells engineered materials globally, including food and beverage filtration materials, wallcover base materials, and flooring products, with 15 manufacturing sites across multiple countries [2]. Financial Performance - Berry Global currently holds a Zacks Rank 3 (Hold) and has seen its shares decline by 10.2% over the past year, while the industry has grown by 5.4% [3]. Operational Insights - Berry Global is benefiting from investments in advanced equipment technologies and cost-reduction actions, which are expected to enhance margin performance. However, the company faces challenges in its Consumer Packaging International unit due to lower selling prices from resin price reductions and softness in the North American transportation and shrink film markets affecting the Flexibles unit [4]. Transaction Details - The $3.6 billion deal announced in February 2024 is expected to position NewCo as a leader in the global specialty materials industry, with completion anticipated in the second half of 2024, pending Glatfelter shareholder approval [9].