Reynolds buys Pactiv for $6 billion


Reynolds Group Holdings Ltd. (Chicago) has acquired consumer and foodservice packaging manufacturer Pactiv Corp. (Lake Forest, IL) for $6 billion in a deal that pays Pactiv shareholders $33.25/share. That price was 39% higher than Pactiv's close of $23.97 on May 14, before talks were disclosed, according to The New Zealand Herald. Reynolds is a wholly owned subsidiary of New Zealand-based Rank Group Limited, which is owned by Graeme Hart, a Kiwi reported to be the richest person in Australasia.

According to the same New Zealand Herald report, Hart's purchase was highly leveraged, with the entrepreneur borrowing as much as $5 billion to help finance for the Pactiv acquisition. Creditors include Credit Suisse, HSBC, and Australia New Zealand Bank....
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