Novolex® and Pactiv Evergreen Inc. have entered into a definitive agreement to combine, forming a dominant force in the food, beverage, and specialty packaging industry.
The merger aims to deliver one of the most comprehensive packaging portfolios, supported by robust manufacturing and distribution capabilities across North America.
Under the agreement, Novolex will acquire Pactiv Evergreen in an all-cash transaction valued at $6.7 billion, including debt. Pactiv Evergreen shareholders will receive $18.00 per share, a 49% premium to the company’s unaffected stock price as of Dec. 2, 2024.
The merger unites two complementary businesses, expanding product offerings to include more than 250 brands and 39,000 SKUs. The combined company will serve major industries, from retail and foodservice to beverage producers, with innovative and sustainable packaging solutions.
Stan Bikulege, Chairman and CEO of Novolex, highlighted the strategic benefits:
“This transaction reflects our commitment to creating the industry’s most innovative, sustainable, and customer-focused company. Pactiv Evergreen’s strong portfolio and talented team will add significant depth to Novolex’s capabilities. Together, we will enhance our ability to meet shifting consumer demands and strengthen the future of food and beverage packaging.”
Michael King, President and CEO of Pactiv Evergreen, echoed these sentiments:
“This milestone underscores the significant progress we’ve made in recent years to transform and enhance our business. Partnering with Novolex positions us to better serve our customers, maximize shareholder value, and continue driving innovation.”
Both companies share a commitment to sustainability, with investments in recyclable, compostable, and reusable packaging solutions. By combining expertise in materials science and manufacturing technologies, the new entity will accelerate product development to address evolving consumer demands for eco-friendly and functional packaging.
Transaction Details and Timeline
The merger, backed by Apollo Funds and Canada Pension Plan Investment Board (CPP Investments), has been approved by Pactiv Evergreen’s Board of Directors and majority shareholder. Pending regulatory approval, the transaction is expected to close in mid-2025.
Once complete, Pactiv Evergreen will become a privately held company, with Novolex CEO Stan Bikulege leading the combined organization. CPP Investments will contribute approximately $1 billion to the deal and hold a significant minority stake.
Advisors:
- Novolex: Barclays Bank PLC (lead financial advisor), Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, and Paul, Weiss, Rifkind, Wharton & Garrison LLP (legal advisor).
- Pactiv Evergreen: Goldman Sachs & Co. LLC, Lazard Frères & Co. LLC, and Paul Hastings LLP (legal advisor).
For more information, visit Novolex or Pactiv Evergreen.
