Pactiv Agrees to Be Bought By Reynolds Group for $6 Billion

Packaging company Pactiv Corporation (PTV) agreed to be purchased by Reynolds Group Holdings Ltd in a deal worth about $6 billion.

Pactiv shareholders will receive $33.25 in cash for each share of Pactiv common stock, a premium of about 39% over the stock's closing price on May 14, 2010, Pactiv said in a statement. The deal should be completed by the end of 2010, subject to shareholder and regulatory approval.

"We are excited to join with Reynolds' consumer and foodservice businesses to grow and add more capabilities for our customers," Pactiv CEO Richard Wambold said.

Reynolds, a wholly owned subsidiary of New Zealand's Rank Group, has obtained debt financing for the transaction from affiliates of Credit Suisse, HSBC and Australia New Zealand Bank.