A global nonwovens titan priced like a distressed commodity producer—Magnera’s equity is a high-leverage option on flawless integration and rapid deleveraging.
Overview
Magnera Corp (MAGN) is a newly formed pure-play global specialty materials leader created on Nov 4, 2024 through a Reverse Morris Trust transaction combining Berry Global’s Health, Hygiene & Specialties nonwovens/films business with Glatfelter. Berry shareholders own ~90% and legacy Glatfelter holders ~10%. Headquartered in Charlotte, NC, Magnera operates 45 facilities with ~8,500 employees and sells engineered polymer- and fiber-based nonwovens and films used in essential products like diapers, adult incontinence, feminine care, wipes, surgical gowns/masks, filtration (tea/coffee), and building wraps. Revenue is split between Consumer Solutions (53%) and Personal Care (47%), with diversified end markets and deep B2B relationships with Tier-1 CPG and medical customers. Fiscal 2025 pro-forma results were ~$3.2B revenue and $362M Adj. EBITDA, with $126M FCF enabling early deleveraging. The equity story is dominated by integration execution, synergy delivery, and debt reduction that could unlock significant upside from a very depressed valuation.