Pactiv Evergreen Inc. has recently announced that it has signed a definitive agreement to sell its Pine Bluff paper mill in Arkansas and Waynesville extrusion facility in North Carolina to Suzano S.A., a global paper and pulp producer. The transaction, valued at $110 million in cash, is expected to close in the fourth quarter of 2024, subject to customary closing conditions.
Pine Bluff is known for producing liquid packaging board and cupstock used in the manufacturing of fresh beverage cartons, paper cups, and other fiber-based food and beverage packaging. Waynesville, on the other hand, provides additional extrusion capacity for the board produced at Pine Bluff.
As part of the agreement, Suzano has committed to offering employment to the current employees at both facilities. Furthermore, Pactiv Evergreen and Suzano will enter into a long-term supply arrangement, where Suzano will use Pine Bluff and Waynesville to supply liquid packaging board to Pactiv Evergreen’s converting business.
Michael King, President and Chief Executive Officer of Pactiv Evergreen, expressed his satisfaction with the transaction, stating that it concludes the strategic alternatives review process. He believes that the sale is consistent with the company’s focus on value creation and expects it to reduce the capital intensity of their business, improve their cash flow profile, and strengthen their balance sheet.
The transaction is subject to foreign antitrust approval and is expected to result in a non-cash impairment charge of approximately $320 million to $340 million in the third quarter of 2024. Pactiv Evergreen plans to provide updated guidance for fiscal year 2024 concurrent with its second-quarter earnings.
Pactiv Evergreen Inc., a leading manufacturer and distributor of fresh foodservice and food merchandising products and fresh beverage cartons in North America, produces a wide range of on-trend and feature-rich products that protect, package, and display food and beverages. The company’s products, many of which are made with recycled, recyclable, or renewable materials, are sold to a diverse mix of customers, including restaurants, foodservice distributors, retailers, food and beverage producers, packers, and processors.