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LAKE FOREST, Ill. - Packaging provider Pactiv Corporation today announced an agreement to purchase Winkler Forming Inc., a thermoformer of amorphous polyethylene terephthalate (APET) for food packaging, for $72.5 million.
The acquisition is expected to be accretive immediately. The transaction is expected to close after expiration of the Hart-Scott-Rodino waiting period.
The purchase of Winkler will afford Pactiv an opportunity to expand in the wholesale bakery, confectionery, and fresh-cut produce markets. The addition of APET products enhances Pactiv's already extensive rigid display packaging product line, consisting of oriented polystyrene, talc-filled polypropylene, aluminum, molded fiber, ovenable paperboard, and foam products.
The acquired company has two manufacturing facilities, one in Santa Fe Springs, Calif., and the other in Bridgeview, Ill. The Santa Fe Springs location also houses a state-of-the-art tool making operation. The current manufacturing assets will support 40-percent growth in sales without additional capital.
"Winkler is a natural bolt-on acquisition that complements our existing foodservice, supermarket and food packaging businesses. It provides Pactiv with the opportunity to participate in the fast growing APET food packaging market that has had a compound average annual growth rate of 6 percent. In addition, it gives Pactiv's extensive sales force and distribution network a key new product line to sell," said Richard L. Wambold, chairman and CEO of Pactiv Corporation.