LAKE FOREST, ILL. — Pactiv Corp. has entered into an agreement to acquire PWP Industries, a manufacturer of amorphous polyethylene terephthalate (APET) that services the packer, processor, bakery, supermarket and quick-service restaurant markets. The purchase price is $200 million.
“PWP is one of the top manufacturers of APET food service disposable products,” said Richard L. Wambold, chairman and chief executive officer of Pactiv. “The company 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 food service market due to its outstanding functionality, particularly its freezing capability, as well as its recyclability.”
PWP operates three manufacturing facilities in the United States, as well as a facility that processes post consumer PET. The company employs approximately 600 and had sales of approximately $140 million in 2009. The transaction is expected to close in the first quarter, according to Pactiv.