Pactiv Sells Protective and Flexible Packaging Businesses

Pactiv Corp. (Lake Forest, Ill.) will sell its North American and European protective and flexible packaging businesses to an affiliate of AEA Investors LLC, a private equity firm, for approximately $530 million and the assumption of certain liabilities. Product lines in these businesses include air cushioning, air padded mailers, foam, kraft honeycomb, flexible packaging, and hospital supplies. In 2004 these businesses reported sales of $838 million and operating income of $60 million excluding restructuring and other charges.
“The sale of these businesses represents an important step in Pactiv's strategy to grow its higher return consumer, foodservice and food packaging businesses,” said Richard L. Wambold, chairman and chief executive officer of Pactiv. The transaction is expected to close in the third quarter.
With offices in New York and London, AEA invests in companies in the industrial products and services, speciality chemicals and consumer products sectors. With annual sales of $3.4 billion, Pactiv Corporation produces specialty packaging products for the consumer, foodservice/food packaging and protective/flexible packaging markets.

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