- September 24, 2003, PRESS RELEASE
LAKE FOREST, IL, USA—Pactiv Corp. reports an agreement to purchase the plastic packaging assets of Rock-Tenn Company. According to Pactiv, the purchased assets are related to the manufacture of amorphous polyethylene terephthalate (APET) and polypropylene (PP) products for food packaging. "This business had net sales for the 12 months ending June 30, 2003, of $73 million [USD]. 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," says the suburban-Chicago Pactiv, adding that the transaction is expected to close next month and is subject to regulatory approvals before closing.
Says Pactiv CEO Richard Wambold, "The acquisition brings new confectionery and fresh-cut products to Pactiv, but more importantly provides capacity to support Pactiv's rapid growth in APET and PP products that began year with the acquisition of Winkler Forming." Wambold also reports the assets will enable the company to expand its position in the case-ready market.
Learn more about Pactiv at pactiv.com.