Glatfelter soars 115% on plan to merge with Berry Global unit

Shares of Glatfelter (GLT) are soaring after the company and Berry Global (BERY) announced plans for Berry to spin-off and merge the majority of its Health, Hygiene and Specialties segment to include its Global Nonwovens and Films business with Glatfelter. The new combined company will become a global leader in the growing specialty materials industry, the companies said in a statement. Together, the Berry unit and Glatfelter generated pro forma revenue of approximately $3.6B and adjusted EBITDA of $455M based on combined results for the last twelve months period ended December 2023. In presentation slides, the companies said the equity value of the new company, with Berry representing 90% and Glatfelter 10%, is $1.8B, assuming eight-times adjusted EBITDA. Shares of Glatfelter are up 115% to $2.75 in premarket trading while Berry is down 2% to $63.00.