Par-Pak to be bought by Waddington: report

Brampton, Ont.-based rigid plastics packaging manufacturer Par-Pak Ltd. is about to be purchased by plastic tableware maker Waddington North America Inc., according to a report from Moody’s Investors Services.

Waddington is in the market for $650 million in loans, Moody’s said, and the proceeds will be used to fund its buy of Par-Pak and to refinance debt obligations.

Waddington is headquartered in Covington, Ky., and was acquired by Olympus Partners of Stamford, Conn., in November. Waddington manufactures disposable plastic plates, cups and cutlery for catering, food service and consumer markets.

“We view the Par-Pak acquisition a credit neutral event overall,” Moody’s lead analyst John Zhao said in a news release. “While financial leverage will increase initially, we expect that the company will generate solid free cash flow to pay down debt and reduce its leverage steadily in the next 12-18 months.”

Par-Pak is privately owned, with facilities in Houston, Tex., and Milton Keyes, England.

The deal has yet to close.