Pactiv to acquire PWP Industries

Pactiv Corp has announced an agreement to acquire the stock of PWP Industries, an HPC company.

PWP is a manufacturer of amorphous polyethylene terephthalate (APET) disposable products.

The purchase price is $200 million.

PWP’s 2009 sales were approximately $140 million.

The acquisition is expected to be modestly accretive to earnings per share and free cash flow in 2010 and generate a return in excess of Pactiv’s cost of capital within two to three years.

The transaction is expected to close in the first quarter and is subject to normal regulatory approvals and certain conditions to closing.

PWP primarily manufactures a range of APET foodservice containers for several channels, including packer processor bakeries, supermarkets, and quick service restaurants.