Hefty trash bag maker Pactiv agrees to $6-billion takeover by Rank Group
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Reporting from Chicago — Pactiv Corp., the maker of Hefty trash bags, announced an agreement Tuesday to be acquired by New Zealand’s Rank Group Ltd. for about $6 billion.
Privately held Rank Group will pay $33.25 in cash for each share of Lake Forest, Ill.-based Pactiv, or about $4.6 billion. The sale price represents a premium of about 39% over Pactiv’s closing price of $23.97 on May 14, the day before reports were published regarding a potential transaction.
Rank Group also will assume Pactiv’s $1.5-billion debt. Pactiv said the deal was targeted to close by the end of the year.
The deal brings together two well-known consumer packaging companies.
Pactiv is best known for its Hefty brand products, including OneZip storage bags and Easy Grip party cups. It also makes packaging products for the food industry.
Rank Group sells Reynolds Wrap foil and Presto brand food bags. The company, owned by New Zealander Graeme Hart, has been acquiring packaging companies at a rapid clip. In 2008 Rank Group bought Alcoa Packaging & Consumer Group for $2.7 billion. In August 2007 Hart purchased North Carolina-based Blue Ridge Paper Products in a $450-million deal.
Pactiv was spun off from Tenneco Inc. in 1999. It employs about 12,000 workers. In 2009 it had sales of $3.4 billion.
Pactiv shares rose $1.66, or 5.4%, to $32.58 on Tuesday.
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