Pactiv Corporation has reached an agreement to acquire the stock of PWP Industries, an HPC company, for $200M. The transaction is expected to close in the first quarter and is subject to normal regulatory approvals and certain closing conditions.
PWP, a manufacturer of APET (amorphous polyethylene terephthalate) disposable foodservice containers, had 2009 sales of approximately $140M. Pactiv expects the acquisition to generate a return in excess of the company’s cost of capital within two to three years.
PWP employs approximately 600 people and operates three manufacturing facilities in the United States, as well as a facility that processes post-consumer PET. Pactiv had 2009 sales of $3.4B.
Richard L. Wambold, chairman and chief executive officer of Pactiv, said that PWP "has a solid track record of sales growth, high margins, and cash flow generation. This acquisition represents an opportunity for Pactiv to expand our position in APET, which is a fast growing material in the foodservice market due to its outstanding functionality, particularly its freezing capability, as well as its recyclability.