“We are excited about the completion of this transaction. With this move to optimise our portfolio, we solidify our position as a global leader of consumer-focused packaging solutions while enhancing the stability of our earnings, free cash flow and growth. We are confident that employees transferring to Magnera will benefit from the new company’s strong leadership and focused capabilities, and we are grateful for their contributions,” Berry chief executive officer Kevin Kwilinski, said.
Berry Global has completed the merger of its health, hygiene, and specialties nonwovens business with Glatfelter Corporation, creating Magnera Corporation, the world’s largest nonwovens company.
Magnera began trading on the NYSE under the ticker ‘MAGN’.
The transaction, structured as a Reverse Morris Trust, was finalised on November 4, 2024.
Under the previously disclosed terms of the transaction, on November 4, 2024, Berry completed the separation of the HHNF business through a spin-off of all the outstanding shares of its wholly owned subsidiary that owned the HHNF business (‘Spinco’) to our stockholders of record as of the close of business on November 1, 2024 by means of a pro rata distribution. Spinco was then merged into a wholly owned subsidiary of Magnera, the company said in a press release.
As a result of the transaction, which was structured as a Reverse Morris Trust transaction, each Berry stockholder received 0.276305 shares of Magnera with respect to each share of Berry common stock owned as of November 1, 2024 (which reflects the 1-for-13 reverse stock split effected by Magnera on November 4, 2024). In addition to their new shares of Magnera, Berry stockholders continue to hold the same number of shares of Berry they held prior to the transaction. As of the completion of the merger, Berry stockholders received 90 per cent of the outstanding shares of Magnera on a fully-diluted basis, and current Glatfelter shareholders retained 10 per cent of the outstanding shares of Magnera on a fully-diluted basis.
No fractional shares of Magnera common stock were issued as a result of the merger, and instead Berry stockholders will receive cash in lieu of any fractional share.
Fibre2Fashion News Desk (RR)
