AEA Investors LLC (Lake Forest, Ill.), announced the completion of the acquisition of substantially all of Pactiv Corp.’s protective and flexible business units for approximately $530 million. Effective immediately, the acquired businesses will operate as Pregis Corporation, a new entity.
“This venture presents opportunities for our customers, employees and new investors,” said James D. Morris, Pregis chief executive officer (CEO).
“AEA and Pregis share a strategic vision for sales and earnings growth that will allow our new company to accelerate business improvements and enhance our market presence. We are positioned to invest in product and service innovations focused on meeting the current and future needs of the growing market we serve,” Morris added.
The acquisition includes diverse protective, flexible and foodservice packaging and hospital supply products both in North America and Europe. Key products include inflatable void-fill systems, Microfoam and polyethylene sheet foam products, Hefty Express mailers, Jiffy mailers (Europe), Hexacomb honeycomb, bubble air cushioning, engineered foam plank, flexible films, rigid food containers (Europe) and hospital supplies (Europe). In 2004, the acquired businesses had sales of $838 million.
Supporting Morris in his new role as CEO, are several former Pactiv executives who will now comprise the Pregis senior management team: Andy Brewer, president, Protective Packaging North America; Peter Lewis, president, Protective and Foodservice Packaging Europe; Bill McBee, president, Hexacomb; Hartmut Scherf, president, Flexibles; Dieter Eberle, president, Hospital Supplies and Kevin Corcoran, chief financial officer.
Source: AEA Investors LLC