Reynolds Group Holdings Ltd. has completed its $6 billion acquisition of Pactiv Corp., a maker of clamshells and other plastic packaging for the food industry.
The acquisition, originally announced in August, was approved by Pactiv shareholders during a Nov. 15 meeting, Lake Forest, Ill.-based Pactiv said in a statement. Pactiv becomes an “indirect wholly owned subsidiary” of Auckland, New Zealand-based Reynolds, according to the statement.
Buying Pactiv further expands Reynolds’ global footprint in the food and beverage packaging industry. Reynolds’ four primary operating segments include Closure Systems International. Evergreen, Reynolds Consumer and SIG. Pactiv, maker of Hefty garbage bags, and Reynolds had combined revenue of $7.17 billion in 2009.
“I am excited about the opportunity to grow Pactiv’s foodservice and Hefty consumer businesses,” Graeme Hart, owner of Reynolds’ parent company, said in the Aug. 17 statement announcing the acquisition. “I am very pleased to add these businesses to our packaging group.”
Before agreeing to be bought by Reynolds, Pactiv made acquisitions of its own this year. In April, Pactiv purchased PWP Industries for $200 million as part of an effort to use more recycled content in the production of its polyethylene terephthalate, or PET, clamshells.
PWP has an 80,000-square-foot facility in Davisville, W.Va., capable of recycling 40 million pounds of PET per year. The plant takes PET products, primarily water and soda bottles, and recycles them for use in the company’s manufacturing facilities in California, Georgia, Illinois and Mexico.
Pactiv spokesman Matt Gonring in July said the company’s agriculture clamshells now include up to 75% recycled content, depending on production location and availability of recycled material.