US-based packaging firm Pactiv has announced that its board of directors has accepted the resignation of Paul Stecko. The company claims that the resignation was driven by recent changes in New York Stock Exchange (NYSE) rules, which make Stecko ineligible to serve on the company's key committees.
Stecko was therefore unable to contribute to the level he and the board would have liked. With the exception of Pactiv chairman and chief executive officer Richard Wambold, the company's board of directors will now consist solely of independent outside directors.
"With his industry specific knowledge, Paul Stecko made significant contributions to the board, particularly in Pactiv's early years as an independent public company," said Wambold. "While the board recognises and supports the NYSE changes regarding corporate governance, and Paul's resignation in light of that, he will be missed."
The announcement also comes after the company's recent acquisition of the plastic packaging assets of packaging firm Rock-Tenn. The purchased assets are related to the manufacture of amorphous polyethylene terephthalate (APET) and polypropylene products for food packaging.
This business had net sales for the 12 months ended 30 June 2003, of $73 million. Pactiv claims that the purchase price of $60 million is approximately equal to the replacement cost of the assets, and the acquisition is expected to be accretive to 2004 earnings. The transaction is expected to close this month and is subject to normal regulatory approvals and customary conditions to closing.
"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 Wambold. "In addition, these assets will enable Pactiv to expand its position in the emerging case ready market."
Pactiv is a global producer of speciality packaging products with sales of $2.9 billion (€2.5bn) and operations in 14 countries. The company claims to win more than 80 per cent of its sales from market sectors in which it holds the number one or number two market-share position.