Brazilian pulp manufacturer acquires Pine Bluff paper mill for $110 million
Pactiv Evergreen Inc. announced it has signed a definitive agreement to sell its Pine Bluff, Arkansas paper mill and Waynesville, North Carolina extrusion facility to global paper and pulp producer Suzano S.A.
The $110 million cash transaction is expected to close in the fourth quarter of this year.
Suzano has agreed to offer employment to several hundred current employees at Pine Bluff and Waynesville.
The Pine Bluff mill produces liquid packaging board and cupstock used to make fresh beverage cartons, paper cups and other fiber-based food and beverage packaging. Waynesville provides incremental extrusion capacity for the board produced at Pine Bluff.
Pactiv Evergreen and Suzano have also agreed to enter into a long-term supply arrangement at the closing of the transaction pursuant to which Suzano would use Pine Bluff and Waynesville to supply liquid packaging board to Pactiv Evergreen’s converting business.
“The sale of Pine Bluff and Waynesville concludes the strategic alternatives review process,” said Michael King, President and Chief Executive Officer of Pactiv Evergreen. “This transaction is consistent with our disciplined focus on value creation, and we expect it to reduce the capital intensity of our business, improve our cash flow profile and further strengthen our balance sheet.”
“I want to thank our Pine Bluff and Waynesville employees for their significant contributions to Pactiv Evergreen and continued dedication to our customers,” he added.
Pactiv Evergreen is a leading manufacturer and distributor of fresh foodservice and food merchandising products and fresh beverage cartons in North America.
In a joint letter from Suzano’s leadership team to Pine Bluff employees, the new owners said they were excited to invest in Arkansas.
“On behalf of everyone at Suzano, I am reaching out to share how excited we are to invest in Arkansas and be part of your community. If you are not familiar with our company, Suzano is the world’s largest and lowest-cost pulp manufacturer. We are based in Brazil and have operations around the world. Throughout our company’s 100-year history, we have grown thoughtfully and intentionally – guided by a deep commitment to developing sustainable, innovative products, increasing choice and value for our customers, fostering a culture and workplace where our people are proud to work, and building strong relationships with our communities,” a company letter from CEO Joao Alberto Abreu stated.
“This is an important moment for our company as we enter the U.S. paperboard market. Pine Bluff offers Suzano a competitive asset, excellent geographic location, and access to high-quality, low cost wood. We are proud to have chosen Arkansas as our first mill location with this entrance to the U.S. market.
“We also understand news like this can cause uncertainty and raise questions, especially for employees. You should know that we will receive all existing jobs and labor contracts at Pine Bluff. This aligns with our longstanding operating principle of never closing a mill we’ve acquired,” Abreu said.