Pactiv Evergreen announces restructuring actions, to eliminate 1,300 positions

Pactiv Evergreen plans to take significant restructuring actions related to its beverage merchandising operations. The company expects to close its Canton, North Carolina mill and its converting facility in Olmsted Falls, Ohio with operations at both facilities expected to end during the second quarter of 2023. Production from the Olmsted Falls facility will be reallocated to other sites. The company also continues to explore strategic alternatives for its Pine Bluff, Arkansas mill and Waynesville, North Carolina facility. The company has not set a timetable in relation to this process. In addition, the company plans to reorganize its management structure by combining the beverage merchandising and food merchandising businesses effective April 1. Approximately 1,300 positions will be eliminated as a result of these actions. The company will provide outplacement assistance and severance to impacted employees, consistent with company policy and labor union agreements. As a result of the closures and change in management structure, we expect to incur non-cash charges in the range of $310M to $330M primarily during 2023 related to the acceleration of depreciation of plant and equipment and other asset impairments. The company also expects to incur and pay cash charges in the range of $130M to $185M primarily during 2023 and 2024 related to severance and associated benefits and exit and disposal and other transition costs. All the above estimates are provisional and include significant management judgments and assumptions that could change materially as the company executes our plans. Actual results may differ from these estimates, and the execution of the plan could result in additional restructuring charges or impairments not reflected above.