Berry Global Group has entered into an agreement to sell its Specialty Tapes business to Nautic Partners for approximately $540 million.
The Specialty Tapes Division (Specialty Tapes) produces over 1,500 SKUs of pressure-sensitive tapes and adhesives, catering to industrial, automotive, HVAC, building, medical and construction applications.
The division’s product portfolio includes foil tapes such as aluminum HVAC sealing tapes, film tapes like polyethylene masking tapes, medical-grade tapes, double-coated foam tapes for automotive and aerospace uses, and duct tapes for general-purpose repairs. Specialty Tapes operates out of three facilities: its headquarters in Franklin, Kentucky; a location on Long Island in Riverhead, New York; and another near Providence in Bristol, Rhode Island.
“We are thrilled to partner with the Specialty Tapes management team in the company’s next phase of growth,” said Sean Wieland, a managing director at Nautic. “The Specialty Tapes business provides a strong value proposition to its customers rooted in technical expertise and high levels of service. We believe the company has a significant runway to grow and expand with its customers and look forward to supporting these efforts. We are also excited to add another investment to our specialty materials portfolio within Nautic’s Industrials group.”
“Specialty Tapes is a unique business with an experienced team, a strong value proposition, and meaningful growth potential,” said Fielding Jenks, a senior vice president at Nautic. “We are excited to support management in carving out the business and executing on the forward growth plan.”
Berry Global Group (NYSE: BERY) is a multinational manufacturer of plastic packaging products, including films, containers, closures, and engineered materials. These products serve the food and beverage, healthcare, personal care, industrial, and consumer goods industries. The company, led by CEO Kevin Kwilinski, is headquartered in Evansville, Indiana, and employs over 46,000 people, with facilities in North America, Europe, Asia, and South America.
Berry Global has been divesting several of its business units, including the November 4 spin-off of its Health, Hygiene, and Specialties Global Nonwovens and Films (HHNF) division to Glatfelter Corporation. Additionally, on November 20, Amcor agreed to acquire Berry Global Group in an all-stock transaction valued at approximately $8.4 billion. This merger will result in a combined revenue of more than $23 billion for the two consumer and healthcare packaging companies.
“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,” said Mr. Kwilinski. “The sale of Specialty Tapes further supports these efforts and the continued focus on our high-growth consumer portfolio.”
Based in Providence, Rhode Island, Nautic Partners is a middle-market private equity firm focusing on investments in healthcare, industrial, and outsourced services sectors. Nautic targets majority equity investments ranging from $50 million to $400 million in companies with enterprise values between $100 million and over $1 billion. In October 2024, Nautic closed its latest fund, Nautic Partners XI LP, at its hard cap of $4.5 billion in limited partner commitments, surpassing the initial target of $3.75 billion.
Goldman Sachs & Co. served as Berry Global Group’s financial advisor, while Santander advised Nautic Partners on the transaction.
This sale of Specialty Tapes to Nautic is expected to close in the first half of 2025.
© 2024 Private Equity Professional | December 3, 2024
