The transaction is returning $8,572.42 per share in cash to holders of common stock in PVC Container Corporation, the parent company of Novapak.
The combined business will generate more than $240m of blow-molded bottle and injection-molded preform sales to over 500 customers from 14 manufacturing facilities in the US and Canada.
The new entity will retain the name Pretium Packaging, be headquartered in Chesterfield, MO, and be managed by the current Pretium management team together with certain members of Novapak management.
Pretium’s president and CEO, George Abd, said: “We’re excited to realise the opportunity this combined enterprise presents. Pretium and Novapak have focused on small-to-medium volume, custom bottle applications.
“Much of both companies’ recent growth has come in PET bottles. The advantage for both companies’ customers is that while Pretium has invested significantly in one-step, wide mouth PET technology and assets, Novapak has made significant investment in two-step, narrow neck PET and preform manufacturing. The combination of these world-class assets and capabilities, will allow the merged company to offer our customers a full range of one-step and two-step PET bottles, as well as extrusion blow-molding and injection-blow-molding alternatives in HDPE and PP. In addition, there’s very little overlap between the two companies’ current customers, enabling the company to now deliver a broader range of products and services to an already existing customer base.”
Source: Pretium Packaging
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