Magnera Corp (MAGN) Business

Item 1.  BUSINESS

(In millions of dollars, except as otherwise noted)

General

The Company is a leading global supplier of a diverse portfolio of innovative specialty materials comprised of organic and synthetic raw ingredients. We market our products predominantly into stable, consumer-oriented end markets for disposable and durable applications. End user examples include wipes, healthcare, adult incontinence, apparel, baby, feminine care, air filtration, and food and beverage. We also provide technical solutions in infrastructure markets. Our customers include a mix of leading global and national brands, private label, and small to mid-sized regional businesses.

On November 4,
2024 (the “Closing Date”), Treasure Holdco, Inc. (“Treasure”), which was a
wholly owned subsidiary of Berry Global Group, Inc. (“Berry”), completed its
merger (the “Transaction”) with the Glatfelter Corporation (“GLT” or
“Glatfelter”) which concurrently changed its name to Magnera Corporation (the
“Company,” “we,” or “Magnera”).  As a result, pre-Transaction
Treasure shareholders received shares of Magnera representing 90% of the
combined company and GLT shareholders retained 10%.  As Treasure was
identified as the accounting acquirer, the prior year presentation represents
standalone Treasure results with the acquisition method of accounting being
applied to the assets acquired and liabilities assumed from GLT. See Note
2. Acquisition.

Additional financial information about our segments is provided in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the “Notes to Consolidated and Combined Financial Statements,” which are included elsewhere in this report.

Segment Overview

The Company’s operations are organized into two operating and
reportable segments: Americas and Rest of World. The structure is designed to
align us with our customers, provide improved service, enable future growth initiatives and efficiency of decision making to facilitate synergy realization.

Americas

The Americas segment is the Company's largest segment, accounting for 57% of consolidated net sales. Our Americas operations consist of 22 manufacturing facilities - 14 in the United States, 3 in Brazil, 2 in Mexico, 2 in Canada, and 1 in Colombia. The segment primarily manufactures a wide range of products and components of personal care and consumer solution products and components of products including medical garments, wipes, dryer sheets, filtration, baby diapers and adult incontinence.

Rest of World

The Rest of World segment represents 43% of our consolidated net sales. Our Rest of World operations consist of 23 manufacturing facilities - 7 in Germany, 5 in France, 4 in United Kingdom, 2 in China, 2 in Spain, and 1 each in Italy, Netherlands, and Philippines. This segment primarily manufactures a broad collection of personal care and consumer solution products and components of products including tea bags, coffee filters, wipes, cable wrap, filtration, baby diapers and adult incontinence.

Marketing, Sales, and Competition

We reach our customer base through a direct sales force of dedicated professionals. Our scale enables us to dedicate certain sales and marketing efforts to particular customers, when applicable, which enables us to develop expertise that we believe is valued by our customers.

The major markets in which the Company sells its products are highly competitive. Areas of competition include service, innovation, quality, and price.  This competition is significant as to both the size and the number of competing firms.  Competitors include, but are not limited to, Ahlstrom, Avgol, Mativ, PFNonwovens, Freudenberg, and Fitesa.

Raw Materials

Our primary raw materials are polymer resin,
wood-based fibers, and pulps. In addition, we use other materials in
various manufacturing processes. While temporary industry-wide
shortages of raw materials have occurred, we have historically been able to
manage the supply chain disruption by working closely with our suppliers and
customers.  Changes in the price of raw materials are generally
passed on to customers through contractual price mechanisms over time, during
contract renewals, and other means.

Patents, Trademarks and Other Intellectual Property

We customarily seek patent and trademark protection for our products and brands while seeking to protect our proprietary know-how. While important to our business in the aggregate, sales of any one individually patented product is not considered material to any specific segment or our consolidated results.

Environment and Sustainability

Sustainability is comprehensively embedded across our business, from how we run our manufacturing operations more efficiently to the investments we are making in sustainable solutions. With our global scale, deep industry experience, and strong capabilities, we are uniquely positioned to assist our customers in the design and development of sustainable solutions. We also work globally on
continuous improvement of energy usage, water efficiency,
waste reduction, recycling, and reducing our greenhouse gas emissions.

3

Human Capital and Employees

Health and Safety

Safety for our approximately 8,500 employees is our number one priority. We believe when it comes to employee safety, our best should always be our standard. It is through the adherence to our global environment, health, and safety principles that we have been able to identify and mitigate operational risks and drive continuous improvement.

Talent and Development

We seek to attract, develop and retain talent throughout the Company. Our succession management strategy focuses on a structured succession framework and multiple years of performance. Our holistic approach to developing key managers and identifying future leaders includes challenging assignments, formal development plans and professional coaching.

Employee Engagement

We seek to ensure that our employees are motivated to perform every day. To further that objective, our engagement approach focuses on clear communication and recognition. We communicate through regular employee meetings with business and market updates and information on production, safety, quality and other operating metrics. We have many recognition-oriented awards and conduct Company-wide engagement surveys, which have generally indicated high levels of engagement and trust in leadership.

Inclusion

We strive to build a safe and inclusive culture where employees feel valued and treated with respect. We believe inclusion helps drive engagement, innovation and organizational growth. To date, our focus has been on providing training for our global workforce and increasing awareness about the importance of having a culture of inclusion.

Ethics

Our employees are expected to act with integrity and we maintain a global Code of Business Conduct that is acknowledged by employees and provides the Company's framework for conducting business ethically.

Available
Information

We make available, free of charge, our annual reports on
Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and
amendments, if any, to those reports through our internet website as soon as
reasonably practicable after they have been electronically filed with the
SEC. Our internet address is
www.magnera.com.  The information
contained on our website is not being incorporated herein.