Novolex, Pactiv Evergreen finalize merger

Charlotte, North Carolina-based packaging company Novolex has announced the completion of its merger with Pactiv Evergreen, Lake Forest, Illinois.

“Today is an exciting chapter in the Novolex growth story as we officially welcome Pactiv Evergreen to our company and leverage our combined talents and capabilities to better meet our customers’ evolving needs,” Novolex Chairman and CEO Stan Bikulege says. “Together, we’ll continue to solidify our position and deliver in the markets we serve by optimizing operations, accelerating product innovation and driving commercial excellence while maintaining sustainable growth across the business. I look forward to working with our new, expanded Novolex family to achieve our shared mission of packaging a better future through choice, innovation and sustainability. Together, we will work to not only be a leading packaging company, but also to become a leading industrial company in all aspects of our business. I am truly honored to be a part of our combined team.”

RELATED: Novolex, Pactiv Evergreen to merge in $6.7B deal

The transaction is valued at approximately $6.7 billion, inclusive of Pactiv Evergreen’s net debt as of Sept. 30, 2024. Under the terms of the agreement, Pactiv Evergreen’s stock has been delisted from Nasdaq and shareholders received $18 per share in cash, a 49 percent premium to the two-month unaffected volume weighted average trading price as of Dec. 2, 2024, the last trading day prior to media reports regarding a potential transaction.

Headquartered in Charlotte, North Carolina, the combined company will continue to operate under the Novolex name. The company says this combination delivers greater choice to customers with more than 250 brands and 39,000 combined stock keeping units.

Michael King, former President and Chief Executive Officer of Pactiv Evergreen, said,

“I'm excited to see Pactiv Evergreen join forces with Novolex as one company, unlocking opportunities for growth and expansion,” says Michael King, former president and CEO of Pactiv Evergreen. “I am confident in the future of the combined business and team under Stan’s leadership to become a stronger partner of choice for customers and deliver unmatched solutions that support their packaging needs and sustainability goals.”

The combined company’s executive leadership team will be led by Bikulege and include senior leaders from both Novolex and Pactiv Evergreen.  King will continue to serve as an advisor to Novolex.

Barclays acted as lead financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as legal advisor to Novolex, while Morgan Stanley & Co. LLC and RBC Capital Markets LLC also acted as financial advisors to the company. Financing was provided by Wells Fargo Securities LLC, UBS Investment Bank, Barclays, BMO Capital Markets, Deutsche Bank Securities Inc., Morgan Stanley, RBC Capital Markets LLC, Santander, BNP Paribas, Citigroup, Mizuho, CIBC Capital Markets, HSBC, Macquarie Capital, Standard Chartered Bank and J.P. Morgan Securities LLC.

Goldman Sachs & Co. LLC and Lazard Frères & Co. LLC acted as financial advisors, and Paul Hastings LLP acted as legal advisor to Pactiv Evergreen.