NEW YORK (TheStreet) -- Shares of Hefty trash-bag maker Pactiv (PTV) have skyrocketed more than 20% Monday on word that private equity firm Apollo Global Management may acquire the company in a leveraged buyout.
The deal talks, first reported by
The Wall Street Journal
, could conclude in a matter of weeks, the paper said. The buyout would value Pactiv at up to $5.05 billion, or $34 to $38 a share, according to
. Pactiv has a market cap of about $3.2 billion and debt of roughly $1.5 billion.
If acquired by Apollo, Pactiv could be combined with Apollo-owned Berry Plastics, according to reports. Apollo bought Berry for about $2.3 billion in 2006 and had merged it with another company under its ownership, Covalence Specialty Materials.
Lake Forest, Ill.-based Pactiv also makes plastic storage bags for food and household items, aluminum cookware, and foam, pressed paperboard, plastic, and molded fiber tableware. In 2009, consumer products accounted for 38% of its sales. According to the company, more than 80% of its sales come from market sectors in which it holds the number one or two market-share position.
On Friday, another Apollo portfolio company,
, priced its initial public offering of 10 million common shares at $8 each, lower than the expected $14 to $16 range.
Companies backed by private-equity firms are being forced to price their IPOs at a discount; buyout funds returned less money to clients last year than any other period over the last decade, according to a
-- Reported by Andrea Tse in New York
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