Notable Stock to Watch: Berry Global Group (NYSE: BERY)

Berry Global Group (NYSE: BERY) changed -14.95% to recent value of $46.94. The stock transacted 8672091 shares during most recent day however it has an average volume of 1451.79K shares. It spotted trading -20.66% off 52-week high price. On the other end, the stock has been noted 15.90% away from the low price over the last 52-weeks.

On July 30, 2019, Arsenal Capital Partners (Arsenal), a leading private equity firm that invests in middle-market specialty industrials and healthcare companies, announced the acquisition of Seal For Life Industries, LLC (Seal For Life) from Berry Global Group (NYSE: BERY; Berry) for $328 million.

Seal For Life offers an unrivaled portfolio of corrosion protection and sealing solutions with the highest technical specifications in the industry.  The company has operations in the Netherlands, Belgium, India, Mexico, and the United States, with over 380 employees.  Seal For Life’s complementary brands, including Anodeflex™, Stopaq®, Polyken®, Covalence®, and Powercrete®, present a differentiated value proposition to customers with a focus on preventing and combating corrosion, water ingress, and insulation issues, with superior lifetime economics.  The company has annual sales of approximately $120 million.

Seal For Life will serve as Arsenal’s platform in the coating solutions sector focusing on the global infrastructure and industrial markets.  The platform’s current and future technology portfolio provides maintenance and repair solutions that prolong the life and durability of critical applications, such as water and oil pipelines, tanks and terminals, power generation and petrochemical infrastructure.

Dirk Totte, General Manager of Seal For Life, said, We are excited to partner with Arsenal given its deep expertise in the coating and sealants sector.  Our strong platform combined with strategic investments and acquisitions will accelerate growth in current and new end markets such as renewable energy, infrastructure and commercial buildings.

Sal Gagliardo, an Operating Partner of Arsenal, said, Seal For Life has an excellent market reputation for providing its customers with the highest level of performance and quality to meet stringent regulatory requirements.  The company continues to innovate protective and anti-corrosion solutions that are solving the market needs in the oil and water pipeline industry and in emerging applications for other core infrastructure markets.  We expect to build on the company’s leading market brands and accelerate the trajectory of new technologies and solutions.

Seal For Life will benefit from Arsenal’s resources and expertise in the coatings and materials sector, where we have strong relevance in the company’s markets and technologies.  We look forward to supporting the Seal For Life team and building the business organically and with strategic acquisitions that will further expand its position in the broader coatings protection industry, added Roy Seroussi, an Investment Partner of Arsenal.

J.P. Morgan Securities LLC acted as financial advisor to Berry.  William Blair & Company acted as financial advisor and Jones Day acted as legal advisor to Arsenal.

BERY has a gross margin of 18.10% and an operating margin of 9.60% while its profit margin remained 5.00% for the last 12 months. Its earnings per share (EPS) expected to touch remained 7.30% for this year while earning per share for the next 5-years is expected to reach at 12.27%.

The company has 130.08M of outstanding shares and 130.08M shares were floated in the market. According to the most recent quarter its current ratio was 2 that represents company’s ability to meet its current financial obligations. The price moved ahead of -12.95% from the mean of 20 days, -8.50% from mean of 50 days SMA and performed -7.36% from mean of 200 days price. Company’s performance for the week was -13.20%, -10.74% for month and YTD performance remained -1.24%.

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