Inside these posts: Hefty

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Pactiv profit down 14% despite higher volume

Pactiv Corp. reported a 14 percent drop in third-quarter earnings on prior-year earnings from discontinued operations as the maker of Hefty garbage bags and other packaging products reported higher volume but lower margins on a jump in raw-material costs. Get the full story »

Pactiv to be acquired by New Zealand’s Rank Group

Pactiv's new owner, Rank Group, sells products like Reynolds Wrap foil. (Bill Hogan/Chicago Tribune)

Pactiv Corp., the Lake Forest maker of Hefty trash bags, announced an agreement Tuesday to be acquired by New Zealand’s Rank Group Ltd. in a transaction valued at about $6 billion.

Privately-held Rank Group will pay $33.25 in cash for each Pactiv share, or about $4.6 billion. The sale price represents a premium of about 39 percent over Pactiv’s closing price of $23.97 on May 14, the day prior to published reports regarding a potential transaction.

Rank Group also will assume Pactiv’s $1.5 billion debt. Pactiv said the deal is targeted to close by the end of the year. Get the full story »

Hefty sues Glad for trademark infringement

The locally owned maker of Hefty trash bags this week filed a lawsuit alleging trademark infringement and unfair competition against rival bag maker Glad Products Co.

In the suit, Pactiv Corp., based in Lake Forest, said that for 17 years it has used the word “basics” on its bags and its stylized mark was trademarked in September¬† 1993. The company charged that Glad is using the word “basic” in connection with its own trash bags, creating confusion in the consumer’s mind between the two brands. ¬† Get the full story »