Pactiv Evergreen Inc. Announces Definitive Agreement to Sell Pine Bluff Paper Mill and Waynesville Extrusion Facility to Suzano SA

Core Viewpoint - Pactiv Evergreen Inc. has signed a definitive agreement to sell its Pine Bluff paper mill and Waynesville extrusion facility to Suzano S.A. for $110 million in cash, aiming to enhance value creation and improve financial metrics [2][3]. Group 1: Transaction Details - The sale includes Pine Bluff, which produces liquid packaging board and cupstock, and Waynesville, which provides extrusion capacity for the board [1]. - The transaction is expected to close in the fourth quarter of 2024, pending customary closing conditions, including foreign antitrust approval [3]. - Current employees at Pine Bluff and Waynesville will be offered employment by Suzano [2]. Group 2: Financial Implications - Pactiv Evergreen anticipates a non-cash impairment charge of approximately $320 million to $340 million in the third quarter of 2024 due to the transaction [3]. - The company expects the transaction to reduce capital intensity, improve cash flow, and strengthen its balance sheet [2]. Group 3: Future Guidance - Updated guidance for fiscal year 2024 will be provided, reflecting changes in management's assumptions resulting from the agreement, alongside the second quarter earnings report [4]. Group 4: Company Overview - Pactiv Evergreen Inc. is a leading manufacturer and distributor of foodservice and food merchandising products in North America, focusing on sustainable packaging solutions [5].