Pactiv Evergreen Revises Guidance; Reaches Agreement To Acquire Fabri-Kal

(RTTNews) - Pactiv Evergreen Inc. (PTVE) said it profitability is expected to be negatively impacted by a number of significant external challenges. As a result, the company revised its fiscal 2021 adjusted EBITDA guidance to $550 million. The revised guidance is preliminary and will be updated in third quarter results release.

The company noted that the continued increase in raw materials costs, particularly the cost of resins, and increased transportation costs has delayed its ability to recover these costs into 2022. The continuing labor shortage is anticipated to impact volumes.

Separately, Pactiv Evergreen said its subsidiary, Pactiv Evergreen Group Holdings Inc. has agreed to acquire Fabri-Kal, a manufacturer of foodservice and consumer brand packaging solutions. The deal is valued at approximately $380 million. Headquartered in Kalamazoo, Michigan, Fabri-Kal operates four manufacturing plants in the U.S.