Berry Global Group, Inc. (NYSE: BERY) has successfully completed a strategic spin-off and merger of its Health, Hygiene, and Specialties Global Nonwovens and Films unit with Glatfelter Corporation, resulting in the formation of Magnera Corporation (NYSE: MAGN). This merger positions Magnera as the largest global player in the nonwoven materials sector, offering solutions across healthcare, hygiene, and industrial markets.
Magnera will commence trading on the New York Stock Exchange (NYSE) under the ticker symbol “MAGN” starting November 5, 2024. Berry Global CEO Kevin Kwilinski expressed excitement over the deal, highlighting how this restructuring strengthens Berry’s core portfolio, with a focus on stable earnings, enhanced free cash flow, and growth prospects. He emphasized the benefits for employees transitioning to Magnera and acknowledged their contributions to Berry’s journey.
Structured as a Reverse Morris Trust transaction, this spin-off involved Berry distributing shares of its Health division’s subsidiary, known as “Spinco,” to Berry stockholders as of November 1, 2024. Spinco then merged into Glatfelter’s subsidiary, establishing Magnera. This setup allowed Berry stockholders to receive 0.276305 shares of Magnera for each Berry share they owned, while Glatfelter shareholders retained 10% of Magnera shares on a fully diluted basis.
Berry shareholders continue to hold their original shares, while receiving new Magnera shares, effectively maintaining their investment in Berry alongside their new holdings in Magnera. Notably, no fractional Magnera shares were issued, with cash provided instead for any fractional shares resulting from the merger.
The spin-off and merger represent a focused strategic step for Berry, allowing it to hone its resources on core packaging solutions for consumers, while Magnera, with distinct nonwovens focus, aims to drive innovation in materials that serve a wide range of industrial and healthcare applications. This merger opens growth avenues for both Berry and Magnera, especially in specialty materials where nonwoven technology plays a critical role.
Berry and Glatfelter shareholders now have a stake in the evolving landscape of specialty materials through Magnera, aligning both companies with robust long-term growth opportunities and broader market access.