CHARLOTTE, N.C. - Glatfelter Corporation (NYSE: GLT) and Berry Global Group, Inc. (NYSE: NYSE:BERY) have announced that Glatfelter's shareholders have voted in favor of a merger with Berry's Health, Hygiene, and Specialties Global Nonwovens and Films business. The approval, which took place during a Special Meeting held today, paves the way for the transaction's expected completion on November 4, 2024.
The shareholders ratified several key proposals necessary for the merger, including the issuance of shares, amendments to the company's charter, and an advisory proposal on executive compensation. In preparation for the merger, Glatfelter will undergo a reverse stock split at a ratio of 1-for-13 and rebrand as Magnera Corporation.
The reverse stock split is scheduled to take effect at the start of trading on November 4, 2024, under a new CUSIP number. This action will impact all issued and outstanding shares of Glatfelter common stock, as well as existing equity plans and securities linked to the company's stock. The par value of the common stock will remain at $0.01 per share.
Computershare Trust Company, N.A., the transfer agent for Glatfelter, will manage the reverse split process. Shareholders will not receive fractional shares; instead, these will be sold on the open market, with net proceeds distributed to the shareholders entitled to them.
The reverse split is designed to affect all shareholders uniformly without altering their percentage interest in the company's equity, except for adjustments due to fractional shares. Shareholders with book-entry shares will receive a transaction statement post-split, and those holding shares through banks, brokers, or other nominees will have their positions automatically adjusted.
The merger is subject to the satisfaction or waiver of the remaining closing conditions. This corporate move is expected to reshape Glatfelter's business structure and market presence significantly.
Berry Global Group is known for its innovative packaging solutions and sustainability efforts, while Glatfelter specializes in engineered materials for various applications, including personal care and hygiene products.
This article is based on a press release statement and aims to provide shareholders and the investment community with factual information regarding the upcoming corporate actions and their implications.
In other recent news, Berry Global Group has advanced its strategic merger with Glatfelter Corporation, waiving certain conditions and amending their Tax Matters Agreement. The merger, initially announced in February 2024, includes the spin-off of Berry's Hygiene, Health and Nonwovens business and its subsequent merger with a Glatfelter subsidiary, soon to be renamed Magnera Corporation. The company has also appointed James T. Glerum, Jr. to its board of directors and revealed plans to appoint new directors to the board of the soon-to-be-formed Magnera Corporation.
In the financial sphere, Berry Global Group reported a 2% organic volume growth and a 16% increase in adjusted earnings per share in its Q3 2024 earnings call. Operating EBITDA also showed a positive trend, with a 6% rise compared to the same quarter in the previous year. The company reaffirmed its fiscal 2024 guidance, projecting low single-digit volume growth for the fourth fiscal quarter.
These recent developments underscore Berry Global Group's ongoing strategic efforts to enhance efficiency and provide value to stakeholders. As the company continues to focus on portfolio optimization, lean transformation, and commercial excellence initiatives, it anticipates surpassing peer performance and delivering on its financial targets.
InvestingPro Insights
As Berry Global Group, Inc. (NYSE: BERY) prepares to merge its Health, Hygiene, and Specialties Global Nonwovens and Films business with Glatfelter Corporation, investors may find value in examining Berry's current financial position and market performance.
According to InvestingPro data, Berry Global Group boasts a market capitalization of $7.9 billion, with a price-to-earnings ratio of 14.39. This relatively modest valuation is further emphasized by an InvestingPro Tip indicating that the stock's valuation implies a strong free cash flow yield, which could be attractive to value-oriented investors considering the upcoming merger.
Despite a slight revenue decline of 6.32% over the last twelve months to $12.18 billion, Berry Global has maintained profitability. An InvestingPro Tip highlights that management has been aggressively buying back shares, which often signals confidence in the company's future prospects and can potentially boost shareholder value.
The company's stock performance has been robust, with a one-year price total return of 28.65% as of the latest data. This aligns with another InvestingPro Tip noting that the stock is trading near its 52-week high, reflecting positive market sentiment possibly tied to the anticipated merger.
For investors seeking more comprehensive analysis, InvestingPro offers 7 additional tips for Berry Global Group, providing a deeper understanding of the company's financial health and market position as it moves forward with this significant corporate action.
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