Novolex, Pactiv Evergreen to merge in $6.7B deal

Two North American packaging companies have entered into a merger agreement as Charlotte, North Carolina-based Novolex and Lake Forest, Illinois-based Pactiv Evergreen are set to combine in a deal worth approximately $6.7 billion.

According to a news release, under the terms of the agreement, Novolex will acquire Pactiv Evergreen for $18 per share in an all-cash transaction. Upon the merger’s completion, Pactiv Evergreen will become a privately held company, and its common stock no longer will be listed on Nasdaq.

The combined company will be led by current Novolex CEO Stan Bikulege.

“This transaction reflects the continuation of our long-term growth strategy to create the industry’s most innovative, sustainable and customer-focused company,” Bikulege says. “Pactiv Evergreen’s strong product portfolio, along with their talented team, will complement and add significant depth to Novolex’s diverse packaging solutions.

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“Our companies share a dedication to customer success [and] 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.”

The merger is set to bring together what the companies call “two highly complementary businesses” that will offer a broad product line. The asset base includes an “extensive” manufacturing footprint and an “expansive” distribution network.

More than 250 brands will be included under the combined company, establishing a diverse substrate set in the packaging industry with multiple types of fiber, resin and postconsumer-recycled content and manufacturing operations in the U.S., Canada and Mexico.

“Novolex and Pactiv Evergreen serve attractive end markets, and both companies have made tremendous progress in recent years to enhance their operations and strengthen their focus on product innovation and sustainability leadership,” say Rob Seminara and Peter Sinensky, partners at Apollo, the majority shareholder of Novolex since 2022. “As the packaging industry continues to evolve, bringing together these two talented teams will better position the combined company with enhanced and complementary capabilities to meet shifting consumer demands and provide the highest quality products and services to customers.”

Novolex and Pactiv Evergreen also list improved customer service, accelerated product innovation and enhanced dedication to sustainability as factors considered in the merger.

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The transaction has been approved by the Pactiv Evergreen board of directors and is subject to receipt of regulatory approvals and other customary closing conditions. It also has been approved by Packaging Finance Ltd., the majority shareholder of Pactiv Evergreen, so no other shareholder approval is required.

The deal is expected to close in mid-2025.

“We are pleased to reach this agreement with Novolex, which shares our commitment to product quality and recognizes our potential for future growth,” Pactiv Evergreen President and CEO Michael King says. “The board and leadership team evaluated a range of opportunities and are confident this transaction maximizes shareholder value and is the best path forward for all stakeholders.

“This milestone is a testament to our talented employees and Pactiv Evergreen’s inherent value," he continues. "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.”