Pactiv, the global packaging provider, has bought up the plastic packaging assets of Rock-Tenn Company in the US.
The assets are related to the manufacture of amorphous polyethylene terephthalate (APET) and polypropylene products for food packaging. For the 12 month period up to 30 June, 2003 the business had net sales of $73 million (€63.6m).
The purchase price of $60 million is approximately equal to the replacement cost of the assets, and Pactiv says that the acquisition should be accretive to its 2004 earnings. The transaction is expected to close in October 2003 and will be subject to normal regulatory approvals and customary conditions.
"The acquisition brings new confectionery and fresh-cut produce products to Pactiv, but more importantly provides capacity to support Pactiv's rapid growth in APET and polypropylene products that began last year with the acquisition of Winkler Forming," said Richard Wambold, chairman and chief executive officer of Pactiv.
"In addition, these assets will enable Pactiv to expand its position in the emerging case ready market."
Assets acquired include two manufacturing facilities, one in Conyers, Georgia, and the other in Franklin Park, Illinois.
Pactiv, a $2.9 billion company, is a provider of advanced packaging solutions for the consumer, foodservice/food packaging and protective/flexible packaging markets. It currently operates 73 facilities in 14 countries around the world.