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 an 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 [1][3]. Group 1: Transaction Details - The sale includes the Pine Bluff mill, which produces liquid packaging board and cupstock, and the Waynesville facility, which provides additional extrusion capacity [2]. - The transaction is expected to close in the fourth quarter of 2024, pending customary closing conditions, including foreign antitrust approval [3]. - A long-term supply arrangement will be established between Pactiv Evergreen and Suzano, allowing Suzano to supply liquid packaging board to Pactiv Evergreen's converting business [2]. Group 2: Financial Implications - The company anticipates a non-cash impairment charge of approximately $320 million to $340 million in the third quarter of 2024 due to the transaction [3]. - Updated guidance for fiscal year 2024 will be provided, reflecting changes in management's assumptions following the agreement [4]. Group 3: Company Background - Pactiv Evergreen Inc. is a leading manufacturer and distributor of foodservice and food merchandising products in North America, focusing on sustainable packaging solutions [5].