Novolex will acquire Pactiv Evergreen for USD 6.7 billion. Upon the completion of the transaction, Pactiv Evergreen will become a privately held company. This transaction is supported by funds managed by affiliates of Apollo and Canada Pension Plan Investment Board which will contribute approximately USD 1 billion.
Dec 16, 2024
Novolex, a packaging manufacturer for the foodservice segment and industrial market, and Pactiv Evergreen Inc, a leading manufacturer of fresh food and beverage packaging, has announced that they have entered into a definitive agreement to combine, creating a leading manufacturer in food, beverage and specialty packaging products.
Under the terms of the agreement, Novolex will acquire Pactiv Evergreen for USD 18 per share in an all-cash transaction valued at USD 6.7 billion, inclusive of Pactiv Evergreen’s net debt as of September 30, 2024. The transaction consideration represents a 49% premium to the two-month unaffected volume-weighted average trading price as of December 2, 2024.
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The combination brings together two highly complementary businesses that will offer a broad product platform, offering an extensive manufacturing footprint and an expansive distribution network, enhancing the combined company’s ability to serve customers ranging from large, blue-chip brands to small businesses that serve millions of consumers every day.
Talking about the new agreement, Stan Bikulege, Chairman and CEO of Novolex, said, ‘‘This transaction reflects the continuation of our long-term growth strategy to create the industry’s most innovative, sustainable and customer-focused company.’’ He adds, “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.”
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Michael King, President and Chief Executive Officer of Pactiv Evergreen, said, “We are pleased to reach this agreement with Novolex, which shares our commitment to product quality and recognizes our potential for future growth. 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. 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.”
