Pactiv to buy Winkler Forming
Forming, a leading thermoformer of amorphous polyethylene
terephthalate (APET) used in food packaging, for $72.5 million,
(€78.5mn) or approximately 7 times EBITDA.
Pactiv Corporation has announced an agreement to purchase Winkler Forming, a leading thermoformer of amorphous polyethylene terephthalate (APET) used in food packaging, for $72.5 million, (€78.5mn) or approximately 7 times EBITDA.
The purchase of Winkler will afford US-based Pactiv an opportunity to expand in the wholesale bakery, confectionery, and fresh-cut produce markets. The addition of APET products enhances Pactiv's already extensive rigid display packaging product line, consisting of oriented polystyrene, talc-filled polypropylene, aluminium, moulded fibre, ovenable paperboard and foam products.
The acquired company has two manufacturing facilities, one in Santa Fe Springs, California, and the other in Bridgeview, Illinois. The Santa Fe Springs location also houses a tool making operation. The current manufacturing assets will support 40 per cent growth in sales without additional capital.
"Winkler is a natural bolt-on acquisition that complements our existing foodservice, supermarket and food packaging businesses. It provides Pactiv with the opportunity to participate in the fast growing APET food packaging market that has had a compound average annual growth rate of 6 per cent. In addition, it gives Pactiv's extensive sales force and distribution network a key new product line to sell," said Richard L. Wambold, chairman and chief executive officer of Pactiv Corporation.
Pactiv, a $2.8 billion company, is a leading provider of advanced packaging solutions for the consumer, foodservice/food packaging and protective/flexible packaging markets. The speciality packaging leader currently operates 70 facilities in 13 countries around the world.