Tags: US | Reynolds | Group | Pactiv

Reynolds to Buy Hefty Trash Bag Maker Pactiv for $4.4 Billion

Tuesday, 17 Aug 2010 10:46 AM

 

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Reynolds Group Holdings Ltd., part of the global packaging business owned by New Zealand's richest man, said Tuesday it has agreed to pay about $4.4 billion for Pactiv Corp., maker of the Hefty brand trash bags.

With debt included, the deal is valued at around $6 billion.

It's the latest in a long string of acquisitions that has built Reynolds parent company Rank Group Ltd. into a worldwide packaging empire under owner Graeme Hart.

The company is offering Pactiv shareholders $33.25 per share in cash.

That's a premium of about 8 percent over Pactiv's closing share price of $30.92 on Monday. But it's 39 percent higher than the closing price May 14, the last trading day before reports of a potential deal.

Reynolds said it has lined up financing for the deal from affiliates of Credit Suisse, HSBC, and Australia New Zealand Bank.

Shares of Pactiv, based in Lake Forest, Ill., jumped $1.70, or 5.5 percent, to $32.62 in early,

© Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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