Future profitability is key to Reynolds acquisition of Pactiv


Combining Pactiv Corp. with Graeme Hart’s Reynolds Group Holdings Ltd. will create a profitable combined company capable of covering its debt service and paying down principal faster, according to one packaging analyst.

Meanwhile, a top Reynolds official said the combined operations will save $200 million through synergies between the two companies, with part of the savings the result of closing some thermoforming plants.

John Hart (no relation to Graeme Hart), plastics and packaging group director at P&M Corporate Finance LLC in Southfield, Mich., called the Reynolds/Pactiv deal “a brilliant packaging consolidation and roll-up strategy by Rank Group and...
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