US buy-out house Apollo Global Management is in talks to buy packaging maker Pactiv in one of the largest leveraged deals in the last two years, according to the Wall Street Journal.
The listed maker of Hefty trash bags has a market capitalisation of around $3.2bn and carries a $1.5bn debt burden.
Pactiv’s Hefty brand products include waste bags, slider storage bags, disposable tableware, and disposable cookware.
The company reported first quarter income of $48m, compared to $77m in the same period in 2009. The drop has been pinned on a 34 per cent and 55 per cent rise in polyethylene and polystyrene costs respectively. Pactiv has said that it was also hit by the trend away from eating away from home during the recession.
The company last traded at $23.97 per share.
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