NEW YORK - In a move to expand its manufacturing capabilities, Berry Global Group, Inc. (NYSE: NYSE:BERY) has acquired F&S Tool, a North American company specializing in precision injection molding tools. The transaction, which was finalized on April 5, 2024, was announced by NewHold Enterprises, the former owner of F&S Tool.
F&S Tool, with its facility in Erie, Pennsylvania, is known for its proprietary technologies in the injection molding sector, boasting 11 issued and pending patents. The company's expertise in producing high-efficiency tools is expected to complement Berry Global's existing global tooling operations.
Kevin Charlton, Co-Chairman at NewHold and Vice Chairman of F&S Tool, commented on the acquisition, highlighting F&S Tool's innovative approach to manufacturing and its alignment with Berry's capabilities. He expressed confidence in the future success of F&S Tool under Berry's leadership.
Founded in 1983, F&S Tool has established itself as a market leader in its field, with a focus on high-end growth markets and a reputation for significant industry cycle-time improvements. The company's 90,000 square foot facility employs 105 people dedicated to advancing injection and compression molding technologies.
The acquisition by Berry Global is seen as a strategic fit, potentially enhancing the company's tooling solutions and intellectual property portfolio. This sale marks the end of NewHold Enterprises' investment in F&S Tool, which began in 2020.
Berry Global Group, Inc. is a Fortune 500 global manufacturer and marketer of plastic packaging products. The acquisition of F&S Tool is part of Berry's ongoing efforts to strengthen its position in the market by leveraging advanced manufacturing technologies and expanding its product offerings.
This news is based on a press release statement.
InvestingPro Insights
Following the acquisition of F&S Tool, Berry Global Group, Inc. (NYSE: BERY) has demonstrated a commitment to enhancing its manufacturing capabilities and solidifying its market position. Investors looking at Berry Global's financial metrics will find a company that is actively working to maximize shareholder value. Berry's management has been focused on share repurchases, as indicated by one of the InvestingPro Tips, which suggests aggressive buyback activities.
Moreover, Berry Global appears to be a company that is trading at a compelling valuation; the company's P/E Ratio (Adjusted) as of the last twelve months ending Q1 2024 stands at 10.01, which is relatively low in comparison to the industry average. This could signal an attractive entry point for investors, especially considering the company's strong free cash flow yield highlighted in another InvestingPro Tip. Additionally, Berry's Price / Book ratio of 1.96 further reflects a potentially undervalued stock, especially since analysts predict profitability for the current year.
InvestingPro Data also shows a robust financial performance with a Gross Profit Margin of 18.19% over the last twelve months as of Q1 2024. Despite a revenue decline of 10.91% during the same period, the company has maintained a healthy gross profit of 2266M USD. The company's dividend yield stands at 1.86%, with a significant dividend growth of 10.0% from the previous year, rewarding long-term investors.
For those interested in in-depth analysis and additional insights, InvestingPro offers more tips on Berry Global Group. Readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With a total of 6 additional InvestingPro Tips available, investors can further explore the potential Berry Global holds following its strategic acquisition of F&S Tool.
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