Pactiv to buy 70 per cent of Jaguar
Jaguar, a leading thermoformer of high impact polystyrene for cold
cups and plates and polystyrene foam for foodservice and food
packaging.
Pactiv is to purchase 70 per cent of Mexico-based Jaguar, a leading thermoformer of high impact polystyrene for cold cups and plates and polystyrene foam for foodservice and food packaging.
The purchase price of $66 million (€67.4m) is approximately 6 times EBITDA. Jaguar currently has 12-month trailing sales of approximately $95 million, which Pactiv is expected to absorb. The acquisition is expected to be accretive immediately and close in early October, and includes the right to purchase the remainder of Jaguar's business.
The buy will give Pactiv control of Jaguar's state-of-the-art manufacturing facility in Guadalajara. It is also in line with Pactiv's currently acquisitive business objectives.
The joint venture will result in long-term benefits in two key areas. First, it provides Pactiv an excellent entry into the fast growing Mexican market for disposable packaging products and offers a solid base for sales growth of Pactiv's US-manufactured products. Second, the joint venture provides Pactiv with a source for new products that can serve its US customer base.
"The addition of Jaguar's HIPS cold cup product line fills an important void in Pactiv's already extensive product offering and complements our existing consumer and foodservice businesses," said Richard Wambold, chairman and chief executive officer of Pactiv. "Likewise, Jaguar's foam product line, which has been a key source of growth for the company, will benefit from Pactiv's proprietary manufacturing technology and know how. Jaguar has an outstanding management team that has grown its business to a leading position in the Mexican foodservice/food packaging market," Wambold continued.
Pactiv, a global $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 72 facilities in 13 countries around the world. For more information about Pactiv, visit the company's web site at www.pactiv.com.
