Berry Global Group has started a formal process to evaluate strategic options for its Health, Hygiene, and Specialties (HH&S) segment.
HH&S offers nonwovens, speciality films, and tapes for several end markets, such as healthcare, hygiene, consumer, building and construction, and industrials.
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The company is exploring various options to enhance shareholder value, including selling, forming strategic partnerships or joint ventures, distributing assets to shareholders, or executing other separation transactions for HH&S businesses.
It expects the current leadership team members of HH&S to remain in charge of the business in any outcome.
The company has not set a particular deadline or timeline for finishing the strategic alternatives process.
Berry will only provide updates on the review of strategic alternatives if the board approves a specific transaction or deems additional disclosure necessary.
Berry chairman and CEO Tom Salmon said: “An ongoing objective of the Berry Board is to constantly look for ways to drive long-term value for our stakeholders, which includes continuously evaluating our portfolio to ensure the Company is best positioned to execute on its strategic objectives.
“Following an extensive analysis by the Board and management team, with support from our incoming CEO Kevin Kwilinski, we have decided to explore strategic alternatives for the HH&S businesses as we continue to seek to enhance value through strategic portfolio management.
“As always, we will be disciplined throughout this process and will only take actions that we believe are in the best interest of the Company and our stakeholders.”
Last month, Berry Global Group received environmental and social Disclosure Quality Scores from the Institutional Shareholder Services.
