Pactiv Evergreen Inc. Completes Sale of Pine Bluff Paper Mill and Waynesville Extrusion Facility to Suzano S.A.
Pactiv Evergreen Inc. (NASDAQ: PTVE) has completed the sale of its Pine Bluff, Arkansas, paper mill and Waynesville, North Carolina, extrusion facility to Suzano S.A. for $110 million, subject to customary adjustments. This transaction is a significant step in Pactiv Evergreen's strategy to focus on core North American converting operations and transition to a capital light business model.
CEO Michael King stated that the sale is expected to improve profitability and cash flows, as well as strengthen the company's balance sheet. He also expressed gratitude to the employees at the sold facilities for their dedication and commitment to Pactiv Evergreen and its customers.
Pactiv Evergreen Inc. (NASDAQ: PTVE) ha completato la vendita del suo stabilimento di carta a Pine Bluff, Arkansas, e dell'impianto di estrusione a Waynesville, Carolina del Nord, a Suzano S.A. per 110 milioni di dollari, soggetto ad aggiustamenti di prassi. Questa transazione rappresenta un passo significativo nella strategia di Pactiv Evergreen per concentrarsi sulle operazioni di conversione nel Nord America e passare a un modello di business a basso capitale.
Il CEO Michael King ha dichiarato che la vendita dovrebbe migliorare la redditività e i flussi di cassa, oltre a rafforzare il bilancio dell'azienda. Ha inoltre espresso gratitudine ai dipendenti delle strutture vendute per la loro dedizione e impegno verso Pactiv Evergreen e i suoi clienti.
Pactiv Evergreen Inc. (NASDAQ: PTVE) ha completado la venta de su fábrica de papel en Pine Bluff, Arkansas, y de la instalación de extrusión en Waynesville, Carolina del Norte, a Suzano S.A. por 110 millones de dólares, sujeto a ajustes habituales. Esta transacción es un paso significativo en la estrategia de Pactiv Evergreen para enfocarse en las operaciones de conversión en América del Norte y hacer la transición a un modelo de negocio de bajo capital.
El CEO Michael King declaró que se espera que la venta mejore la rentabilidad y los flujos de efectivo, así como fortalezca el balance de la empresa. También expresó su gratitud a los empleados de las instalaciones vendidas por su dedicación y compromiso con Pactiv Evergreen y sus clientes.
Pactiv Evergreen Inc. (NASDAQ: PTVE)는 아칸소주 파인 블러프의 제지 공장과 노스캐롤라이나주 웨인스빌의 압출 시설을 Suzano S.A.에 1억 1천만 달러에 매각하는 계약을 체결했습니다. 이 거래는 Pactiv Evergreen의 북미 핵심 가공 운영에 집중하는 전략의 중요한 단계이며, 자본 경량 비즈니스 모델로의 전환을 포함합니다.
CEO 마이클 킹은 이번 매각이 수익성과 현금 흐름을 개선하고, 회사의 재무 건전성을 강화할 것이라고 밝혔습니다. 그는 또한 매각된 시설의 직원들에게 Pactiv Evergreen과 고객에 대한 헌신과 성실함에 감사의 뜻을 전했습니다.
Pactiv Evergreen Inc. (NASDAQ: PTVE) a complété la vente de son usine de papier à Pine Bluff, Arkansas, et de son installation d'extrusion à Waynesville, Caroline du Nord, à Suzano S.A. pour 110 millions de dollars, sous réserve des ajustements habituels. Cette transaction représente un pas important dans la stratégie de Pactiv Evergreen pour se concentrer sur les opérations de transformation en Amérique du Nord et passer à un modèle commercial à faible capital.
Le PDG Michael King a déclaré que la vente devrait améliorer la rentabilité et les flux de trésorerie, ainsi que renforcer le bilan de l'entreprise. Il a également exprimé sa gratitude envers les employés des installations vendues pour leur dévouement et leur engagement envers Pactiv Evergreen et ses clients.
Pactiv Evergreen Inc. (NASDAQ: PTVE) hat den Verkauf seiner Papierfabrik in Pine Bluff, Arkansas, und seiner Extrusionsanlage in Waynesville, North Carolina, an Suzano S.A. für 110 Millionen Dollar abgeschlossen, vorbehaltlich üblicher Anpassungen. Diese Transaktion ist ein bedeutender Schritt in der Strategie von Pactiv Evergreen, sich auf die Kerngeschäfte in Nordamerika zu konzentrieren und zu einem kapitalarmen Geschäftsmodell zu wechseln.
CEO Michael King erklärte, dass der Verkauf voraussichtlich die Rentabilität und den Cashflow verbessern sowie die Bilanz des Unternehmens stärken wird. Er drückte auch seinen Dank an die Mitarbeiter der verkauften Einrichtungen für ihr Engagement und ihre Hingabe an Pactiv Evergreen und dessen Kunden aus.
- Sale of Pine Bluff paper mill and Waynesville extrusion facility for $110 million
- Expected improvement in profitability and cash flows
- Anticipated strengthening of the company's balance sheet
- Transition to a capital light business model
- Divestment of production assets may impact overall manufacturing capacity
Insights
The sale of Pactiv Evergreen's Pine Bluff paper mill and Waynesville extrusion facility to Suzano for
Key financial implications include:
- Improved profitability: By shedding non-core assets, PTVE can potentially enhance its profit margins.
- Enhanced cash flows: The sale proceeds and reduced capital expenditures should bolster the company's cash position.
- Strengthened balance sheet: The influx of cash can be used to reduce debt or fund strategic initiatives, improving financial flexibility.
While the immediate impact on revenue might be negative, the long-term benefits of a more focused business model could outweigh short-term losses. Investors should monitor how management deploys the proceeds and the resulting impact on financial metrics in upcoming quarters.
This transaction signifies a strategic shift for Pactiv Evergreen, potentially impacting its market positioning and competitive landscape. Key points to consider:
- Industry trend alignment: The move towards a capital-light model reflects a broader trend in the packaging industry, prioritizing flexibility and efficiency.
- Market focus: Concentrating on North American converting operations could lead to increased market share and improved customer relationships in this core segment.
- Competitive dynamics: Divesting paper production assets may alter PTVE's supply chain dynamics and relationships with competitors who might become suppliers.
The transaction's success will largely depend on how effectively Pactiv Evergreen leverages its newfound focus and financial resources to drive innovation and market expansion in its core business. Investors should watch for changes in the company's product mix, customer base and market share following this strategic realignment.
LAKE FOREST, Ill., Oct. 01, 2024 (GLOBE NEWSWIRE) -- Pactiv Evergreen Inc. (NASDAQ: PTVE) (“Pactiv Evergreen” or the “Company”) today announced it has completed its previously announced sale of the Pine Bluff, Arkansas, paper mill (“Pine Bluff”) and Waynesville, North Carolina, extrusion facility (“Waynesville”) to Suzano S.A. (“Suzano”).
“The closing of this transaction marks an important milestone as we focus on our core North American converting operations,” said Michael King, President and Chief Executive Officer of Pactiv Evergreen. “I want to thank the employees at Pine Bluff and Waynesville for their years of dedication and commitment to Pactiv Evergreen and to our customers. In addition to facilitating our transition to a capital light business model, we expect the transaction to improve our profitability and cash flows and strengthen our balance sheet.” The sale proceeds are
About Pactiv Evergreen Inc. Pactiv Evergreen Inc. (NASDAQ: PTVE) is a leading manufacturer and distributor of fresh foodservice and food merchandising products and fresh beverage cartons in North America. The Company produces a broad range of on-trend and feature-rich products that protect, package and display food and beverages for today’s consumers. Its products, many of which are made with recycled, recyclable or renewable materials, are sold to a diversified mix of customers, including restaurants, foodservice distributors, retailers, food and beverage producers, packers and processors. Learn more at www.pactivevergreen.com.
Note to Investors Regarding Forward-Looking Statements
This press release contains forward-looking statements. All statements contained in this press release other than statements of historical fact are forward-looking statements, including statements regarding the impact of the aforementioned transaction on the capital intensity, profitability and cash flows of our business. In some cases, you can identify these statements by forward-looking words such as “may,” “might,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “likely” or “continue,” the negative of these terms and other comparable terminology. These statements are only predictions based on our expectations and projections about future events as of the date of this press release and are subject to a number of risks, uncertainties and assumptions that may prove incorrect, any of which could cause actual results to differ materially from those expressed or implied by such statements, including, among others, those described under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023 and our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2024 and June 30, 2024, in each case filed with the Securities and Exchange Commission. New risks emerge from time to time, and it is not possible for our management to predict all risks, nor can management assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement the Company makes. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. Except as otherwise required by law, the Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.
Contact:
Curt Worthington
847.482.2040
InvestorRelations@pactivevergreen.com
_________________________________
1 Includes a
FAQ
What assets did Pactiv Evergreen (PTVE) sell to Suzano S.A.?
How much did Pactiv Evergreen (PTVE) receive for the sale of its facilities?
What are the expected benefits of this sale for Pactiv Evergreen (PTVE)?
What is Pactiv Evergreen's (PTVE) strategic focus following this sale?
