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.

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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.