Berry’s combined global footprint will consist of over 290 locations worldwide, including locations in North and South America, Europe, Asia, Africa, and Australia. The pro forma combined business will employ over 48,000 people across six continents with sales of approximately $13 billion based on the latest published financial statements of Berry and RPC.
“We are very excited to move forward together as a global plastic and recycled packaging industry leader, serving thousands of customers with our high-quality, innovative, and protective solutions along with the industry’s most diversified and expansive manufacturing footprint,” says Tom Salmon, chairman and CEO of Berry. “The acquisition of RPC will give us the opportunity to leverage our combined know-how in innovative material science, product development, and manufacturing technologies to create significant value for our shareholders. Through this shared approach, we anticipate approximately $150 million in annual synergies.”
The acquisition of RPC was financed with a portion of the proceeds of (i) Berry’s May 2019 sale of $1.25 billion of 4.875% first priority senior secured notes due 2026 and $500 million of 5.625% second priority senior secured notes due 2026 and (ii) a $4.25 billion incremental term loan and a €1.075 billion incremental term loan, which also served to refinance an existing Berry term loan.
Berry is scheduled to announce its third fiscal quarter earnings on August 7, 2019, and will provide an update on its progress at that time.
Berry also announced a new business structure linked to its acquisition of RPC. Berry’s business structure will now be comprised of four divisions: Consumer Packaging – International; Consumer Packaging – North America; Engineered Materials; and Health, Hygiene, and Specialties. The company’s previous structure included three divisions: Consumer Packaging, Engineered Materials, and Health, Hygiene, and Specialties.
Berry has appointed Jean-Marc Galvez president of its Consumer Packaging – International Division, and Bill Norman president of its Consumer Packaging – North America Division. Both appointments are effective July 1.
“Our acquisition of RPC and new business structure will allow us to further develop our presence and best serve our customers in key geographic regions,” says Salmon. “Jean-Marc and Bill have been instrumental in developing a growth strategy promoting advantaged products in targeted markets resulting, most recently, in seven consecutive quarters of organic growth for the Consumer Packaging Division.”
Galvez moves to this position after having served as president of Berry’s Consumer Packaging Division since January 2017. From 2012-2016, he served as president -- EMEIA for the company’s Health, Hygiene, and Specialties Division. Galvez joined the company in 2011 as VP – Sales, Marketing and Product Development for Europe. Earlier in his career, he served as global commercial general manager at Merquinsa and held various global general manager and commercial roles at Monsanto in Belgium, and Dow Chemical in Switzerland. Galvez holds a master’s and bachelor’s degree in chemical engineering from Ecole Nationale Superieure de Chimie in Monpellier, France.
Norman moves to this position from his role as Berry’s EVP – Consumer Packaging Commercial Operations which he recently assumed after having served as EVP & GM Consumer Packaging Food since 2016. From 2014 – 2016, he served as president – Rigid Open Top Division. Norman joined Berry in 1993 and previously held a variety of managerial and vice president positions in areas such as accounting, finance, and commercial and strategic planning. He holds a bachelor’s degree in Accounting from the University of Southern Indiana.