Ethan Clarke
Berry Plastics Group Inc. is a leading manufacturer and marketer of plastic packaging products. The company announced its initial public offering (IPO) of 29.4 million shares of its common stock at $16 per share on October 3, 2012. The IPO was expected to raise up to $529 million, with the proceeds intended to redeem notes due in 2016 and address the company's high debt load. Following the IPO, Berry Plastics focused on innovation, sustainability, and expanding its production capacity. The company's headquarters are in Evansville, Indiana, and it serves over 13,000 customers worldwide.
| Characteristics | Values |
|---|---|
| IPO price per share | $16 |
| Number of shares | 29.4 million |
| Total value | up to $529 million |
| Stock exchange | New York Stock Exchange |
| Ticker symbol | BERY |
| Date of IPO | 4 October 2012 |
| Underwriters | Bank of America Merrill Lynch, Citigroup, Barclays, Deutsche Bank Securities, Credit Suisse, Goldman Sachs & Co. and Baird |
| Co-managers | Lazard Capital Markets, Wells Fargo Securities, SunTrust Robinson Humphrey, Lebenthal & Co., LLC and Apollo Global Securities |
| Majority shareholder after IPO | Apollo Funds |
| Number of customers | 13,000+ |
| Net loss | $212 million |
| Net sales | $4.8 billion |
| Total debt | $4.58 billion |
| Net debt to earnings before interest, tax, depreciation and amortization (EBITDA) leverage ratio | 5.8 |
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What You'll Learn
Berry Plastics Group Inc.'s IPO price was $16 per share
Berry Plastics Group Inc. is a leading manufacturer and marketer of plastic packaging products. The company is based in Evansville, Indiana, and has over 13,000 customers, ranging from multinational corporations to small local businesses. Berry Plastics Group Inc. announced its intention to go public in 2012, with an initial public offering (IPO) of 29.4 million shares priced at $16 per share. The IPO was expected to raise up to $529 million.
The company's decision to go public was influenced by its desire to reduce its significant debt load. As of June 30, 2012, Berry Plastics had a total debt of $4.58 billion, resulting in a high leverage ratio compared to its competitors. The IPO proceeds were intended to be used to redeem notes due in 2016, as mentioned in the company's registration filing.
The Berry Plastics IPO was led by several prominent investment banks, including Bank of America Merrill Lynch, Citigroup, Barclays, and Deutsche Bank. The company's shares began trading on the New York Stock Exchange (NYSE) under the ticker symbol "BERY".
Following the IPO, Berry Plastics focused on innovation and sustainability. The company emphasised the importance of reducing the environmental impact of packaging and explored the use of recycled content, bio-based materials, and biodegradable materials. Additionally, Berry Plastics continued to acquire businesses and expand its global presence, solidifying its position as a leading provider of value-added plastic consumer packaging and engineered materials.
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The IPO was led by Bank of America Merrill Lynch
The Berry Plastics IPO was led by Bank of America Merrill Lynch, with additional support from Citigroup, Barclays, Deutsche Bank, Credit Suisse, Goldman Sachs & Co., and Baird, who acted as joint book-running managers. The IPO was priced at $16 per share, at the lower end of its expected range, with 29.4 million shares offered. This gave the company an expected value of up to $2 billion.
Bank of America Merrill Lynch's role as the leading underwriter for the IPO was significant in ensuring the successful launch of Berry Plastics' public offering. The company's decision to go public was influenced by its desire to address its high debt load, which stood at $4.58 billion as of June 30, 2012. The IPO proceeds were intended to be used to redeem notes due in 2016, as mentioned in Berry Plastics' registration filing.
The IPO was an important milestone for Berry Plastics, a leading manufacturer and marketer of plastic packaging products. The company serves over 13,000 customers, ranging from large multinational corporations to small local businesses. With a 30-year track record, Berry Plastics has established itself as a key player in the industry, delivering high-quality customized solutions.
By going public, Berry Plastics not only raised capital but also gained access to the public markets, increasing its visibility and potential for future growth. The IPO allowed the company to showcase its commitment to innovation and sustainability, with a focus on barrier applications and environmentally conscious packaging solutions.
The successful IPO, led by Bank of America Merrill Lynch, marked a new chapter in Berry Plastics' history, providing the company with greater financial flexibility and opportunities to expand its business.
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Berry Plastics is a leading manufacturer of plastic packaging
Berry Plastics Group, Inc. is a leading manufacturer and marketer of plastic packaging products. The company produces a wide range of products, including open-top and closed-top packaging, polyethylene-based plastic films, industrial tapes, medical specialties, flexible packaging, heat-shrinkable coatings, specialty laminates, and FIBCs. With headquarters in Evansville, Indiana, Berry Plastics serves over 13,000 customers, ranging from large multinational corporations to small local businesses.
The company has been a leading provider of value-added plastic consumer packaging and engineered materials, with a 30-year track record of delivering high-quality customized solutions to its customers. Berry Plastics utilizes its proprietary research and development platform, which includes a continually evolving library of Berry-owned molds, patents, manufacturing techniques, and technologies. The company predominantly sells its solutions to consumer-oriented end markets, such as food and beverage, healthcare, and personal care, which together represented 76% of its sales in the 12 months ending June 30, 2012.
Berry Plastics has been one of the most active acquirers of plastic packaging businesses globally, having acquired more than 30 businesses since 1988, including eleven acquisitions in the past six years. The company has a strong focus on innovation, with active projects centered on the use of recycled content, bio-based materials, biodegradable materials, and the introduction of fillers and additives.
In 2012, Berry Plastics announced an initial public offering (IPO) of 29.4 million shares of its common stock at $16 per share, with the shares expected to begin trading on the New York Stock Exchange under the ticker symbol "BERY". The IPO was led by Bank of America Merrill Lynch, Citigroup, Barclays, and Deutsche Bank. Following the offering, Apollo Funds owned about 59.4% of the company, while Graham Berry Holdings had a 5.4% stake.
The IPO provided Berry Plastics with an opportunity to focus on innovation and approach customers in a different manner. The company's commitment to sustainability and reducing the environmental impact of packaging is evident in its product development and operations.
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The company had a total debt of $4.58 billion as of June 30, 2012
On October 3, 2012, Berry Plastics Group Inc. announced the pricing of its initial public offering (IPO) at $16 per share, with the company intending to use the proceeds to redeem notes due in 2016. The IPO was priced at the low end of its expected range of $16 to $18 per share, raising up to $529 million.
As of June 30, 2012, Berry Plastics had a total debt of $4.58 billion, resulting in a net debt-to-earnings ratio before interest, taxes, depreciation, and amortization (EBITDA) of approximately 5.8. This ratio was significantly higher than that of its competitors, such as Aptargroup Inc., Bemis Company Inc., Crown Holdings Inc., and Silgan Holdings Inc., who had leverage ratios no greater than 3.1.
The high debt load of Berry Plastics may have made attracting investors challenging. Josef Schuster, the founder of the Chicago-based IPO research firm IPOX Schuster, commented on the selective nature of the IPO market at the time, favoring small and mid-cap growth names in consumer and technology sectors.
Despite the high debt, Berry Plastics had a substantial customer base of over 13,000, including large multinational corporations and small local businesses. The company was a leading manufacturer and marketer of plastic packaging products, with a diverse product range, such as open-top and closed-top packaging, polyethylene-based plastic films, industrial tapes, medical specialties, and flexible packaging.
Following the IPO, Berry Plastics focused on innovation and sustainability, working to reduce the environmental impact of its packaging solutions. The company also emphasized barrier applications and the use of recycled content, bio-based materials, and biodegradable materials.
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Berry Plastics is headquartered in Evansville, Indiana
Berry Plastics, now known as Berry Global Group, Inc., is headquartered in Evansville, Indiana. The company was founded in 1967 as Imperial Plastics and was purchased by Jack Berry Sr. in 1983. In 1987, the company expanded outside of Evansville, opening a second plant in Henderson, Nevada.
Berry Plastics has since grown into a leading provider of value-added plastic consumer packaging and engineered materials, with a focus on the food and beverage, healthcare, and personal care industries. The company has a broad global reach, with over 265 facilities across the world and more than 46,000 employees.
Berry Plastics' headquarters in Evansville has played a significant role in the company's history and expansion. In 2021, Berry Global, as it is now known, considered expanding its operations in Evansville, demonstrating its continued commitment to the city. The proposed expansion included plans to invest $34.2 million in the facility and create approximately 70 new jobs with competitive wages.
The Evansville plant has also been recognised for its quality control and production consistency, having received the prestigious ISO 9002 certification. This certification underscores Berry Plastics' commitment to maintaining high standards in the highly competitive plastics industry.
With its headquarters in Evansville, Indiana, Berry Plastics has established itself as a key player in the global plastics market, delivering high-quality products and innovative solutions to its customers.
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Frequently asked questions
Berry Plastics Group Inc. priced its initial public offering at $16 a share.
Berry Plastics' IPO took place on October 4, 2012, and it was listed under the New York Stock Exchange under the ticker "BERY".
Berry Plastics Group, Inc. is a leading manufacturer and marketer of plastic packaging products and a major producer of a wide range of products, including open-top and closed-top packaging, polyethylene-based plastic films, industrial tapes, medical specialties, and more.
