Reynolds Group Holdings, a manufacturer and supplier of consumer food and beverage packaging in the US, has entered into an agreement to acquire all outstanding stock of Pactiv Corporation (Pactiv) for a transaction value of approximately $6bn.
The transaction, which is subject to customary regulatory approvals and closing conditions, including the approval of Pactiv’s shareholders, is expected to close in the fourth quarter of 2010
Under the terms of the agreement, Pactiv shareholders will receive $33.25 per share in cash, for a total purchase price of approximately $4.6bn.
Reynolds Group expects to finance the purchase price of the acquisition of Pactiv and associated transaction costs, with up to approximately $5bn of new indebtedness.
Pactiv is a producer of consumer and food service packaging products, including the ‘Hefty’ brand of food and trash bags and disposable tableware.
Reynolds Group operates through four primary segments: SIG, Evergreen, Reynolds Consumer and Closure Systems International. Reynolds Group is based in Auckland, New Zealand.