Pactiv Evergreen Inc. has agreed to sell its Pine Bluff paper mill to global paper and pulp producer Suzano S.A. for $110 million in cash. This sale also includes the extrusion facility in Waynesville, North Carolina. Suzano is set to offer employment to current employees at both locations.
Pine Bluff specializes in producing liquid packaging board and cupstock, essential for creating beverage cartons, paper cups and other fiber-based packaging. The Waynesville facility enhances the extrusion capacity for the board produced in Pine Bluff. As part of the agreement, Suzano will supply liquid packaging board to Pactiv Evergreen’s converting business under a long-term supply arrangement.
“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.”
King also expressed confidence in the future positioning of Pine Bluff and Waynesville.
The transaction is expected to close in the fourth quarter of 2024, pending customary closing conditions and foreign antitrust approval. The company anticipates recording a non-cash impairment charge of approximately $320 million to $340 million in the third quarter of 2024 due to the transaction.
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