Berry Global Explores Options For HH&S Unit Struggling With Weaker Demand, Unfavorable Price-Cost Spread

Berry Global Group, Inc. BERY initiated a formal process to evaluate strategic alternatives for its Health, Hygiene, and Specialties segment.

Berry Global is considering a wide range of available alternatives to maximize shareholder value. The options include a sale, strategic partnership or joint venture, spin-off to shareholders, or other separation transaction for some or all of the businesses within the segment. 

In the recently reported Q3, the Health, Hygiene, & Specialties segment saw a 7% volume decline, primarily attributed to weaker demand in specialty markets, such as filtration and building and construction, including destocking, partially offset by growth in disinfectant wipes.

The segment also saw a $20 million unfavorable impact from the price cost spread in Q3, a $9 million adverse effect from increased business integration costs, and a negative impact from the volume decline.

The HH&S segment provides nonwovens, specialty films, and tapes for various end markets, including healthcare. 

Berry Global expects current members of the segment leadership team to lead the business in any anticipated outcome.

"As always, we will be disciplined throughout this process and will only take actions that we believe are in the best interest of the Company and our stakeholders," said Tom Salmon, Berry Chairman and Chief Executive Officer. 

Price Action: BERY shares are trading higher by 2.05% to $62.32 on the last check Friday.