Berry Global Group Inc. recently cleared another hurdle in the company's move to spin off a majority of its Health, Hygiene and Specialties segment.
The Evansville, Ind.-based plastics processor is combining that portion of business, including its global nonwovens and films business, with Glatfelter Corp.
The deal previously cleared the Hart-Scott-Rodino Antitrust Improvements Act waiting period in the United States. Now comes word the deal has "received all other approvals and clearances under competition and foreign direct investment laws which were conditions to the consummation of the transaction," Berry said.
Berry and Glatfelter announced the deal in February, a move that will allow Berry to focus on consumer packaging.
Berry built its HHS business through a series of transactions over time, most notably the 2015 purchase of Avintiv Inc., which was the world's largest nonwovens maker at the time. Avintiv business, at the time was described as mostly polypropylene and polyethylene flexible nonwoven products that are then converted by others into a wide variety of consumer and industrial products.
Berry ultimately decided the nonwovens business was not a good fit with the rest of the company and announced plans to sell or spin off the company last fall as the company was transitioning to new CEO Kevin Kwilinski.
The deal involving Glatfelter is expected to close during the second half of this year and is still subject to approval by Glatfelter shareholders, Berry said.
Berry shareholders will own 90 percent of the new company and Glatfelter shareholders will own 10 percent, Berry has said. Berry also will receive $1 billion in cash at closing.