Top New Zealand Rich Lister Graeme Hart has clinched his biggest deal yet – a $US4.4 billion ($NZ6.2 billion) acquisition of Hefty rubbish bag maker Pactiv Corporation in the US.It is the biggest acquisition in the US packaging industry for many yea
Top New Zealand Rich Lister Graeme Hart has clinched his biggest deal yet – a $US4.4 billion ($NZ6.2 billion) acquisition of Hefty rubbish bag maker Pactiv Corporation in the US.
It is the biggest acquisition in the US packaging industry for many years and takes Mr Hart's Rank Group to world leadership in the sector.
Pactiv will become part of Rank's Reynolds Group Holdings subsidiary, which makes food and beverage packaging and storage products, including Reynold's Wrap aluminum foil.
Rank came out as the winning bidder over rival paper and packaging company Koch Industries, of Kansas, and private-equity firm Apollo Global Management.
Pactiv is best known for its Hefty brand products, from One-Zip storage bags to Easy Grip party cups. It also makes packaging products for the food industry.
Pactiv shareholders will receive $US33.25 for each share, a premium of approximately 39% over the closing price of $US23.97 on May 14, before the Wall Street Journal reported the company was for sale.
Pactiv shares closed on Monday at $US30.92 a share but went up to $US33 a share in after-market trading after a Bloomberg News report about Rank's advanced discussions.
Pactiv had market value of around $US4.1 billion on Monday; total debt is about $US1.5 billion.
Talks over the Illinois-based company have been under way for several months. Pactiv had originally been in talks with Apollo, but that deal faced financing challenges, sources said.
Pactiv was spun off from Tenneco in 1999. Today, it employs about 12,000 people and had 2009 sales of $US3.4 billion.
Rank Group's other US assets include Alcoa Packaging & Consumer Group, bought for $US2.7 billion and North Carolina-based Blue Ridge Paper Products.
In Europe, Rank owns the Swiss-based SIG Holding, another packaging company acquired for $US2.5 billion.
