Berry Global selling specialty tapes business to Nautic Partners

Berry Global Group Inc. is making merger and acquisition headlines again, announcing an agreement to sell its specialty tapes business to private equity firm Nautic Partners LLC for $540 million.

Evansville, Ind.-based Berry announced the news Nov. 25, just over a week after announcing an $8.43 billion deal to sell itself to Amcor plc.

Berry's announcement noted that the tapes business is focused on industrial customers, and does not fit with Berry's current strategy to focus on consumer-focused end markets.

The tapes business is based in Franklin, Ky., and also includes facilities in Riverhead, N.Y., and Bristol, R.I. The unit makes pressure-sensitive tapes — specialty, foil, film and duct — and adhesives.

End markets include HVAC, building and construction, industrial, retail, medical, aerospace, automotive and other specialty industries.

Sean Wieland, managing director at Providence, R.I.-based Nautic, said the tapes business is "rooted in technical expertise and high levels of service," and has "significant runway to grow and expand with its customers."

Berry plans to use proceeds to pay down debt.

The news continues what has been a year of big changes for Berry Global.

In the third quarter of 2023, Berry closed 20 facilities as part of an effort to optimize its footprint. It followed that with more blockbuster news — the spinoff of the firm's Health, Hygiene and Specialties division and its films unit.

Those businesses, which Berry called HHNF, were combined with Glatfelter Corp. to create a new company called Magnera Corp. That deal closed on Nov. 4.

In announcing the newest deal, Berry CEO Kevin Kwilinski, said: "Over the past year, Berry has undergone a significant transformation, completing the spin-off of our HHNF business, enhancing our product mix and optimizing our portfolio. The sale of tapes further supports these efforts and the continued focus on our high-growth consumer portfolio."

Nautic invests in companies that specialize in health care, industrial and services. Its current plastics investments include compounders Aurora Material Solutions and EnCom Polymers. Previous investments included Spartech LLC and Harrington Industrial Plastics.

Berry is the largest injection molder in North America according to Plastics News' ranking with more than $2 billion in annual sales. It also comes in at No. 3 in thermoforming with $750 million in sales, No. 12 in blow molding with $529 million and No. 15 among North American toolmakers with $60 million in sales.