A subsidiary of North American fresh food and beverage packaging maker Pactiv Evergreen Inc. recently entered into an agreement to buy foodservice and consumer brand packaging manufacturer Fabri-Kal, a company release announced.
Under the terms of the deal, Pactiv Evergreen Group Holdings Inc. will pay $380 million for the business. The transaction price is subject to adjustments for cash, working capital, and debt.
“Combining these two complementary companies will further expand Pactiv Evergreen’s position in the Foodservice segment, broaden our sustainable packaging product offerings and consumer base, and increase our manufacturing capacity and distribution capabilities,” Pactiv Evergreen CEO Mike King said in a statement. “Fabri-Kal is well known for its high-quality products, longstanding customer relationships, and sustainable packaging solutions. We look forward to the Fabri-Kal team joining Pactiv Evergreen and working together to drive increased value for our shareholders, customers, and employees.”
The sale is projected to close in the third quarter or early fourth quarter of 2021.
Fabri-Kal’s portfolio includes clamshells, drink cups, portion cups, and yogurt containers for consumer packaged foods and industrial food. The Kalamazoo, MI-based firm currently has four manufacturing facilities in the US.