Investing.com– Berry Global Group Inc (NYSE:BERY) said on Monday evening that it will sell its industrial tapes business to private equity firm Nautic Partners, as it shifts its focus towards consumer-end markets before its buyout by Switzerland’s Amcor (NYSE:AMCR).
Berry said it will sell the tapes business to Nautic for about $540 million, and that it will use the proceeds of the sale to pay down outstanding debt. The sale is expected to be completed by the first half of 2025.
Monday’s announcement comes just days after Berry agreed to a $8.4 billion buyout offer from Switzerland-based Amcor- a deal that is expected to create a consumer packaging giant.
The packaging industry has seen a high degree of consolidation in recent years, as a demand boom for packaging material, seen during the COVID-19 pandemic, now appeared to be petering out.
Earlier this year, U.S.-based International Paper (NYSE:IP) agreed to buy British packing firm DS Smith PLC (LON:SMDS) for about $7.2 billion.