Pactiv buyout of PWP secures Coke deal

Pactiv Corporation confirmed it has taken over APET manufacturer PWP in a deal worth US$200m that secures it a contract with Coca-Cola.

PWP produces amorphous polyethylene terephthalate (APET) packaging for the US food service industry - including packer processor bakeries, supermarkets, and quick service restaurants. Its 2009 sales were around $140m.

Richard L. Wambold, Pactiv chairman and chief executive officer, said: “This acquisition represents an opportunity for Pactiv to expand our position in APET, which is a fast growing material in the foodservice market due to its outstanding functionality, particularly its freezing capability, as well as its recyclability.

“In addition, this acquisition allows us entry into a multi-year contract with Coca-Cola Recycling LLC for supply of plastic bottles to make post consumer recycled PET for containers.”