Fabri-Kal’s product portfolio consists of portion cups, lids, clamshells, drink cups and yoghurt containers for the consumer packaged goods and industrial food markets
Food and beverage packaging manufacturer Pactiv Evergreen has agreed to acquire Fabri-Kal, a US-based provider of foodservice and consumer brand packaging solutions, for around $380m.
Based in Kalamazoo, Michigan, Fabri-Kal is engaged in the manufacturing of foodservice and custom thermoformed plastic packaging solutions.
The company’s product portfolio consists of portion cups, lids, clamshells, drink cups and yoghurt containers for the consumer packaged goods and industrial food markets.
Fabri-Kal has expertise in the production of a variety of materials, including renewable agricultural fibre.
The company generates around half of its sales from fully compostable packaging products or fully recyclable packaging products and nearly 72% of its sales are from foodservice products.
With around 1,000 employees, the company operates four manufacturing facilities in the US.
Pactiv Evergreen CEO Mike King 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.
“Fabri-Kal is well known for its high-quality products, longstanding customer relationships and sustainable packaging solutions. We look forward to the Fabri-Kal team joining Pactiv Evergreen and working together to drive increased value for our shareholders, customers and employees.”
Subject to regulatory approvals and satisfaction of other customary closing conditions, the deal is expected to be completed in the third quarter or early in the fourth quarter of this year.
Debevoise & Plimpton acted as a legal advisor for Pactiv Evergreen on the transaction, while J.P. Morgan Securities acted as an exclusive financial advisor for Fabri-Kal and Clark Hill acted as a legal advisor.
With around 15,000 employees, Pactiv Evergreen manufactures a range of products that protect, package and display food and beverages.
The company products, which are produced using recycled, recyclable or renewable materials, are used in restaurants, foodservice distributors, retailers, food and beverage producers, packers and processors.