Packaging firm Novolex announced on December 9 that it will purchase competitor Pactiv Evergreen in a $6.7 billion deal, cementing the company’s position in the food, beverage, and specialty packaging industries.
Novolex, which manufactures food packaging products with paper, plastic, and renewable materials, currently operates 56 manufacturing facilities in North America and Europe. By combining with Pactiv Evergreen’s products, the two businesses will offer a broad product portfolio to bolster sales to large and small businesses that serve millions of customers every day across the food and beverage packaging industries.
The move is the latest in a recent market consolidation. In November, Amcor and Berry Global merged, and International Paper acquired DS Smith in April.
Novolex, which currently employs more than 10,000 workers, will extend the company’s reach by adding 14,000 of Pactiv Evergreen’s employees across 51 facilities in North America, establishing an extensive manufacturing footprint with an expansive distribution network.
“This transaction reflects the continuation of our long-term growth strategy to create the industry’s most innovative, sustainable and customer-focused company,” said Stan Bikulege, chairman and CEO of Novolex, in a statement. “Pactiv Evergreen’s strong product portfolio, along with their talented team, will complement and add significant depth to Novolex’s diverse packaging solutions. Our companies share a dedication to customer success, a steadfast entrepreneurial spirit and have aligned values of integrity, collaboration, and excellence. Our commitment to employees is unwavering in making this a best-in-class, high growth platform. We’re excited to continue our growth journey and are confident this combination will strengthen the future of food and beverage packaging.”
Together, Novolex and Pactiv Evergreen will be better equipped to fulfill evolving customer demands for convenient, durable, protective, and user-friendly packaging. The pairing will also help to accelerate product growth in materials science, R&D, and customizable product development capabilities, the companies said.
The merger will include more than 250 brands and 39,000 combined SKUs, and packaging will include multiple types of fiber, resin, and post-consumer recycled content.
“We are pleased to reach this agreement with Novolex, which shares our commitment to product quality and recognizes our potential for future growth,” said Michael King, president and CEO of Pactiv Evergreen. “This milestone is a testament to our talented employees, and Pactiv Evergreen’s inherent value. Over the past three years, we’ve made significant progress on our transformation, focusing on our core strengths while driving operational excellence and enhancing profitability. We look forward to this next exciting chapter.”
Novolex will offer $18 per share to take Pactiv Evergreen private in an all-cash transaction. The deal includes debt. The transaction is expected to close in mid-2025.
The transaction is supported by funds managed by affiliates of Apollo, which has been the majority shareholder in Novolex since 2022, and Canada Pension Plan Investment Board, which will contribute $1 billion and will become a minority shareholder in the post-merger company.
