NEWS
Berry responds to shareholder’s criticism
Left: Berry’s Verdant packaging includes injection
moulded jars which can include up to 100% PCR
New
Lindal site in Brazil
Rigid and flexible packaging major Berry Global in the US has issued an official response to a call from one of its shareholders to implement changes. It has defended its current strategy while not necessar- ily ruling out alternatives. On 23 February, Los Angeles-based Canyon Capital Advisors, which is the fourth largest shareholder in Berry, with a 7% stake, wrote to CEO Thomas Salmon. In this letter, Canyon said that the company’s shares are undervalued and that more needs to be done to improve shareholder returns. Canyon called for Berry to sell non-core businesses and use the proceeds to pay
down debts. It also advised the firm to hire bankers to develop a plan, with the aim of paying off more debt, achieving an investment grade rating and working out ways to improve percep- tions of its products, because of growing popular concern about plastic packaging waste. In response, Berry said
that it remains focused on three key strategic initiatives: to generate sustainable profitable organic growth, to integrate the newly acquired RPC Group business “with an intense focus on cost synergy realisation”, and to continue deleveraging its balance sheet. “Our board and manage-
ment team regularly review our operational portfolio and capital allocation to ensure that we are best positioned to drive share- holder value, including through divestitures, in order to maintain our strong balance sheet and proven track record of free cash flow growth,” Berry stated. It also confirmed that it
was “deeply focused on sustainability, and effectively communicating that commitment to our inves- tors and other stakeholders, and their advisory firms”, including working with customers to reduce waste, improve recyclability and increase recycled content. �
www.berryglobal.com
Hamburg-based aerosol dispensing company Lindal Group has held a ground-breaking ceremo- ny for its new facility at the Industrial Park in Jundiaí, São Paulo, Brazil. Local dignitaries and senior company repre- sentatives were present. The facility will cost $25m over three years, making it the firm’s largest ever investment to date. The building will be approximately 1,160 m², with an extension option of about 465 m². When complete, it will employ about 130 people. Lindal claims to be the
market leader in critical components for the aerosol industry in Brazil, where it has been present for over 20 years. The Brazilian Aerosol Associa- tion estimated the market size was 1.2 billion units in 2017 with a compound annual growth rate of 11%. About 75% of the aerosol packs consumed in Brazil are made there. �
www.lindalgroup.com
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IMAGE: BERRY
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