Solo Cup Sold To Privately-Held Dart Container: Press Release, And Company "Town-Hall" Meetings Confirm

Well, that means Jan Reed and Bob Korzenski will each get an additional half-million dollars to do jobs they had previously signed employment agreements, and accepted payout rights, to do anyway. A handful of other executives will reap smaller all-cash bounties/rewards.

If that seems misshapen to you -- it does to me too. [The deal will now hinge on Hart-Scott antitrust clearance. Not sure whether Pactiv is considered a strong enough competitor to allay any FTC/Justice Department concerns, here. Might look into that a bit, later -- and post on it.]

Here's the presser link -- and a bit:

". . .We at Vestar have had a rewarding and productive partnership with the Hulseman family and Solo Cup’s management team during the past eight years," said Kevin Mundt, managing director, Vestar Capital Partners. "Our combined efforts have enabled Solo Cup to become a leader in the foodservice packaging industry and have led to this powerful, strategic transaction with Dart Container, a very positive outcome for Solo, Dart, the Hulseman family, and Vestar. . . ."

Regarding the integration process, Robert Dart pointed out that unlike publicly traded companies, where short-term results often are of paramount importance to investors and other stakeholders, privately held Dart Container is able to make decisions and investments that are long term in nature. He said the company has the time, and will take the time, to integrate Solo in a thoughtful, analytical manner to ensure lasting success.

Solo is majority-owned by the family of its founder, Leo J. Hulseman, and is also a portfolio company of Vestar Capital Partners IV, L.P. Dart Container is a privately owned company founded by William A. Dart. The integrated organization will be a private company known as Dart Container Corporation. . . .

Goldman, Sachs & Co. acted as lead financial advisor to Solo Cup Company on the transaction. Evercore Partners also advised Solo Cup Company on the transaction. Skadden, Arps, Slate, Meagher & Flom LLP acted as legal counsel to Solo. Ernst & Young Corporate Finance Inc. was lead financial advisor to Dart Container Corporation and Vinson & Elkins LLP served as Dart’s legal counsel on the transaction. . . .

And as ever, the rank and file will bear the brunt of the integration redundancies.