Announces $50 Million Accelerated Share Repurchase
EVANSVILLE, Ind.--(BUSINESS WIRE)--Nov. 24, 2021--
Berry Global Group, Inc. (NYSE: BERY), today announced an agreement to repurchase $50 million of its outstanding common shares in an accelerated share repurchase (“ASR”) transaction using available cash on hand. Under the ASR agreement, Berry will pay $50 million in exchange for the majority of the shares covered under the agreement. The final number of shares to be repurchased under the ASR will be based on the Company’s volume-weighted average share price during the repurchase period, less a discount and subject to adjustments. The final settlement of the ASR transaction is expected to occur in the Company’s December 2021 first fiscal 2022 quarter.
The share repurchases reflect the Company’s ongoing desire to provide current liquidity and create long-term value for its shareholders, while continuing to execute its flexible capital allocation strategy, including funding organic growth projects, opportunistic share repurchases, debt pay down, and strategic acquisitions. “We continue to invest in each of our businesses to build and maintain our world-class, low-cost, manufacturing base, with an emphasis on key growth markets and regions and continue to see incremental opportunity to invest. We have successfully achieved our targets over the past several years and expect to drive our third consecutive year of positive organic growth. The Company continues to operate at a very high level, and given our current valuation, these repurchases are a great opportunity to return capital to shareholders consistent with our capital allocation strategy. Our robust, stable, and dependable cash flow enables us to return cash directly to our shareholders while still maintaining the financial flexibility to prioritize consistent and sustainable growth,” said Tom Salmon, Berry’s Chief Executive Officer.
The ASR is being transacted under the Company’s previously authorized share repurchase program, which has approximately $350 million remaining on it after completing the transaction. The timing and actual number of shares repurchased under the share repurchase authorization will depend on a variety of factors including price, corporate and regulatory requirements, and other market conditions.
At Berry Global Group, Inc. (NYSE:BERY), we create innovative packaging and engineered products that we believe make life better for people and the planet. We do this every day by leveraging our unmatched global capabilities, sustainability leadership, and deep innovation expertise to serve customers of all sizes around the world. Harnessing the strength in our diversity and industry leading talent of 47,000 global employees across more than 300 locations, we partner with customers to develop, design, and manufacture innovative products with an eye toward the circular economy. The challenges we solve and the innovations we pioneer benefit our customers at every stage of their journey. For more information, visit our website at www.berryglobal.com.
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Source: Berry Global Group, Inc.