Berry anticipates $468 million from IPO

By Michael Lauzon
Correspondent

Published: September 19, 2012 6:00 am ET

Related to this story

Topics Packaging

EVANSVILLE, IND. (Updated Sept. 20, 3:15 p.m. ET) — Packaging giant Berry Plastics Group Inc. expects to raise about $468 million in its initial public offering, the company said in a Sept. 19 filing with the Securities and Exchange Commission. The amount represents the midpoint of the estimated range of $16-$18 for the initial share price. Berry will sell 29.4 million shares, although underwriters have an option to buy extra shares.

Berry expects its shares to begin trading Oct. 4 on the New York Stock Exchange under the symbol BERY. Berry is currently owned by investment funds associated with Apollo Group Management LLC and Graham Partners Inc. Apollo will retain a majority interest in Evansville-based Berry after the offering. Minority shareholders will be management, Graham Partners and co-investors.

Berry reported pro forma sales of $4.8 billion for the year ended June 30. It had a net loss of $212 million in that period. Its largest business segment is rigid packaging, followed by engineered materials and flexible packaging. It claims to have outperformed rivals in the past 11½ years, when its sales grew 24 percent per year, compounded.

The company said it will use most of its IPO proceeds to redeem $455 million in senior subordinated notes due Sept. 15, 2016. It will use the rest of the proceeds for working capital and general corporate purposes. As of June 30, Berry’s debt stood at $4.6 billion.

Berry first announced its IPO plans in March.

If the IPO achieves an $18-per-share price, the company’s total value, including stock held by Apollo and minority shareholders, would be about $2 billion. The firm said it does not plan to pay dividends on stock after the IPO.

Following the release of Berry’s prospectus, Standard & Poor’s Ratings Services placed all its ratings on Berry, including the B- corporate credit rating, on CreditWatch with positive implications. The agency explained Berry’s plan to retire some debt with its IPO is a positive step.

“If the transaction successfully closes, we expect leverage to improve to about 6.3x pro forma for June 30 2012,” stated Standard & Poor’s credit analyst Henry Fukuchi in a Sept. 20 news release.

Berry runs 68 U.S. manufacturing locations and 82 globally. It employs more than 15,000.

Lead underwriters for the IPO are BofA Merrill Lynch, Citigroup, Barclays and Deutsche Bank

Securities.


Comments

Berry anticipates $468 million from IPO

By Michael Lauzon
Correspondent

Published: September 19, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

PET film maker Evertis expanding production in Mexico, Brazil, Portugal

November 20, 2014 2:52 pm ET

Evertis, a PET film maker, is expanding production at plants in Mexico, Brazil and Portugal, the company said.    More

Image

Coveris changes culture, eyes IPO

November 20, 2014 1:40 pm ET

CEO Gary Masse has a simple message, and some new math, for everyone at Coveris Holdings Corp. Get on board or get out of the way.    More

Russian industrial film maker converting to food packaging film

November 19, 2014 9:46 am ET

Tasma, an 80-year-old Russian producer of technical industrial films which supported the USSR war effort during World War II, has assumed a new role...    More

Image

Film manufacturers pushing, again, for non-resin price increases

November 17, 2014 2:57 pm ET

UPDATED — For the third time this year, major polyethylene film makers are seeking non-resin price increases for their products.For the third...    More

Image

Silgan Plastics building container plant in Pennsylvania

November 17, 2014 4:47 pm ET

Silgan Plastics LLC will build a 135,000-square-foot site in Erie County, Pa. that will create 30 new jobs during the next three years, according to t...    More

Market Reports

Plastics in Brazil - State of the Industry Report

This in-depth report examines the Brazilian plastics industry from a historical and geographical context. Our analysts provide insight on economic trends and forecasts, growing manufacturing sectors that utilize plastics, private investment opportunities, market environment challenges, and innovations in R&D.

Data tables and charts on producer prices, trade, plastics production and end market indicators is also included.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events