425: Berry Global Announces Key Leadership Appointments for NewCo Following Glatfelter Acquisition

Berry Global announces key leadership appointments for the new company (NewCo) that will be formed after the acquisition of Glatfelter, including the appointment of Kevin Fogarty as Non-Executive Chair, James Till as CFO & Treasurer, and Tarun Manroa as COO.

Summary

• Berry Global has announced key organizational decisions regarding the leadership structure of NewCo, the entity that will be formed after the acquisition of Glatfelter.
• Kevin Fogarty, the current Non-Executive Chair for Glatfelter's Board, will serve as Non-Executive Chair for NewCo's Board of Directors.
• James Till (Jim), currently the Executive Vice President and Controller for Berry Global, will be appointed as Executive Vice President, Chief Financial Officer & Treasurer for NewCo.
• Tarun Manroa, currently the Executive Vice President and Chief Strategy Officer for Berry, will be appointed as Executive Vice President, Chief Operating Officer for NewCo.
• NewCo's Board will consist of nine directors, including Kevin Fogarty and Curt Begle, with two remaining roles to be filled by Glatfelter and five by Berry.
• Ramesh Shettigar and Boris Illetschko will continue in their current roles at Glatfelter until the transaction closes.
• The organizational changes will take effect on the transaction closing date.

Sentiment

Score: 7

Explanation: The document conveys a positive sentiment regarding the future of NewCo and the integration of Berry Global and Glatfelter. The appointment of experienced leaders and the focus on leveraging the strengths of both organizations contribute to this positive outlook.

Positives

• The announcement provides clarity on the future leadership structure of NewCo.
• Experienced leaders from both Berry Global and Glatfelter are being appointed to key positions.
• Kevin Fogarty's experience as Non-Executive Chair at Glatfelter and his previous leadership roles at Kraton Corporation are seen as a positive.
• Jim Till's extensive knowledge of Berry's global business and finance is considered a strong asset.
• Tarun Manroa's experience in corporate development, M&A, and operations is expected to contribute to NewCo's growth.

Risks

• The integration of the two companies may be more difficult, time-consuming, or costly than expected.
• The announcement, pendency, or completion of the proposed transaction could affect the ability of the parties to retain customers and key personnel.
• The risk that Glatfelter shareholders may not approve the transaction proposals.
• The risk that the necessary regulatory approvals may not be obtained or may be obtained subject to conditions that are not anticipated or may be delayed.
• Risks related to potential litigation brought in connection with the proposed transaction.

Future Outlook

The document contains forward-looking statements regarding the expected timing, completion, and effects of the proposed transaction between Berry and Glatfelter, including statements about future financial and operating results and the combined company's plans and objectives. Actual results may differ materially due to various factors.

Management Comments

• Curt Begle: 'Our goal is to pull from the collective talent and capabilities of our two organizations.'
• Curt Begle: 'I will communicate ongoing key decisions as appropriate and when finalized.'
• Curt Begle: 'I recognize todays announcement will leave many of you wanting to learn more details about NewCos organization and overall operating model.'
• Curt Begle: 'On behalf of Thomas and me, we appreciate everyones efforts!'

Industry Context

This announcement is part of a larger trend of consolidation in the packaging and specialty materials industry, as companies seek to achieve greater scale, efficiency, and product diversification. The acquisition of Glatfelter by Berry Global is aimed at creating a stronger player in the health, hygiene, and specialties markets.

Comparison to Industry Standards

• Similar acquisitions in the packaging industry, such as Amcor's acquisition of Bemis, have focused on expanding product portfolios and geographic reach.
• The leadership appointments reflect a common practice of blending talent from both acquiring and acquired companies to ensure a smooth transition and leverage existing expertise.
• The composition of NewCo's board, with a mix of directors from both Berry and Glatfelter, aligns with industry norms for post-merger governance.

Management Changes

Stakeholder Impact

• Shareholders of both Berry Global and Glatfelter will be impacted by the proposed transaction and the future performance of NewCo.
• Employees of both companies will be affected by the integration process and the new organizational structure.
• Customers of both companies can expect potential changes in product offerings and service levels as a result of the merger.
• Suppliers of both companies may experience changes in procurement practices and supply chain management.

Next Steps

• Finalizing the remaining director appointments for NewCo's Board.
• Further decisions regarding NewCo's organization and overall operating model.
• Closing the proposed transaction.
• Integration of the two companies.

Key Dates