Pactiv Evergreen to acquire packaging company for $380 million
LAKE FOREST -- Pactiv Evergreen Inc. said Wednesday its subsidiary, Pactiv Evergreen Group Holdings Inc., has reached a definitive agreement to acquire Fabri-Kal Corp., a leading manufacturer of food service and consumer brand packaging solutions.
The transaction, valued at approximately $380 million, subject to adjustments for cash, working capital and indebtedness, and is expected to close late in the third quarter or early in the fourth quarter of this year, subject to regulatory approvals and satisfaction of other customary closing conditions, the company said.
"Combining these two complementary companies will further expand Pactiv Evergreen's position in the Foodservice segment, broaden our sustainable packaging product offerings and customer base, and increase our manufacturing capacity and distribution capabilities," said Mike King, Pactiv Evergreen CEO.
Fabri-Kal is headquartered in Kalamazoo, Michigan, with approximately 72% of its sales attributable to food service products. Fabri-Kal's products include portion cups, lids, clamshells, drink cups and yogurt containers for the consumer packaged goods and industrial food markets.
Fabri-Kal employs approximately 1,000 people and operates four manufacturing plants in the U.S.
Pactiv Evergreen is one of the largest manufacturers of fresh food and beverage packaging in North America, with a team of nearly 15,000 employees.