1 Additionally, we remain concerned by Berry’s acquisition track record and leverage philosophy. Regrettably, these results have been accompanied by a paltry 29.7% share price uptick during his nearly five-year tenure. Salmon has presided over a 113.4% increase in annual revenues, an 83.8% increase in annual EBITDA and, most importantly, a 134.3% increase in diluted earnings per share. We have spent significant energy and time analyzing Berry’s operational and financial performance since Tom Salmon became Chief Executive Officer in February 2017. It is now necessary to initiate a comprehensive review of strategic alternatives, including a full sale or go-private transaction. As total shareholder returns have lagged in recent years, the Board has repeatedly failed to establish an accretive capital allocation policy and seize opportunities to monetize non-core real estate assets. Not only is the size of the accelerated share repurchase transaction wholly insufficient, but the Board did not even increase its existing authorization. We deem Wednesday afternoon’s announcement of $50 million in planned share repurchases to be an insult to investors. In our view, it is time for the Board of Directors (the “Board”) to take real action to address the impediments to value creation that have compounded at Berry. However, despite these tailwinds, Berry has been a chronic underperformer that perpetually trades at a significant discount to the broader market, relevant indices and packaging peers. We also believe Berry has a capable management team that deserves credit for driving meaningful sales growth and earnings improvements in recent years. We believe Berry has a high-quality portfolio of packaging products and a unique value proposition to offer the global manufacturing sector. (“Berry” or the “Company”), with ownership of approximately one percent of the Company’s outstanding shares. Sees Opportunity to Obtain $100 Per Share or More in Value Via a Sale to One of the Many Well-Capitalized Financial Sponsors and Strategic Acquirers in the MarketplaceĬLEVELAND Ancora Holdings Group LLC today announced that it has sent the below letter to Berry Global Group, Inc.’s (NYSE: BERY) Board of Directors.Īncora Holdings Group LLC (together with its affiliates, "Ancora" or "we") is a shareholder of Berry Global Group, Inc. Outlines Opportunities for Returning Meaningful Capital to Shareholders Through an Upsized Share Repurchase Program and Sale-Leaseback Transaction Highlights That the Company Perpetually Trades at a Significant Discount to Peers, Despite Healthy Revenue and Earnings Growth Also see SA contributor Daniel Jones' piece entitled "Berry Global Group: A Great Play On Packaging.Believes Board Should Immediately Commit to Running a Comprehensive Review of Strategic Alternatives Following Several Years of Share Price Underperformance. Earlier this year, Ancora was part of a group of activists who were able to secure some board seats on Kohl's board and push the retailer for an expanded repurchase plan.Ancora is also asking the company to increase its share buybacks to $1B and use sale-leasebacks for its real estate, according to the WSJ.Berry last week announced a plan to repurchase $50M common shares.In February 2020, Canyon Capital called on the company to sell some non-core businesses and use the proceeds to pay down debt to improve its stock performance. Ancora is not the first shareholder to try pressure Berry Global ( BERY).Ancora believes Berry, which has a market cap of abut $9B, may be worth a $100/share in a sale. Ancora owns about a 1% stake in Berry Global ( BERY) is urging the company to explore strategic alternatives and consider other changes, according to a WSJ report, which cited a letter sent to the company's board.is said to be targeting Berry Global (NYSE: BERY) and is pushing the packaging manufacturer to explore a sale.
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