Effective immediately, the acquired businesses will operate as Pregis Corp., a new entity.
"This venture presents opportunities for our customers, employees and new investors," said James D. Morris, Pregis ceo. "AEA and Pregis share a strategic vision for sales and earnings growth that will allow our new company to accelerate business improvements and enhance our market presence. We are positioned to invest in product and service innovations focused on meeting the current and future needs of the growing market we serve," Morris added.
The acquisition includes diverse protective, flexible and foodservice packaging and hospital supply products both in North America and Europe. Key products include inflatable void-fill systems, Microfoam and polyethylene sheet foam products, Hefty Express mailers, Jiffy mailers (Europe), Hexacomb honeycomb, bubble air cushioning, engineered foam plank, flexible films, rigid food containers (Europe) and hospital supplies (Europe).
Under Pactiv's ownership, these businesses operated as Protective Packaging North America, Hexacomb, Protective Packaging Europe (including the Jiffy and Ambassador units), Sengewald Klinikprodukte and MSP Schmeiser (Hospital Supplies), Kobusch-Sengewald (Flexibles) and the European Foodservice Packaging division. In 2004, the acquired businesses had sales of $838 million.
Pactiv was selected as foodservice distribution management's favorite supplier in the disposables category in the 2003 ID Industry Leaders survey.
Joining Morris on the new senior management team are several former Pactiv executives: Andy Brewer, president, Protective Packaging North America; Peter Lewis, president, Protective and Foodservice Packaging Europe; Bill McBee, president, Hexacomb; Hartmut Scherf, president, Flexibles; Dieter Eberle, president, Hospital Supplies and Kevin Corcoran, chief financial officer.
A site evaluation is underway to select Pregis' new headquarters. That announcement is expected to be made later in the year. In the interim, Pregis headquarters will operate at its current location here. European operations will continue to be headquartered in Amstelveen, The Netherlands.
AEA is a leading private equity firm with majority ownership in several corporations, including Burt's Bees, Inc., Kranson Industries, Convenience Food Systems, Marbo, Inc. and Symrise Holding GmbH.