The Financial Times said the deal underlined growing consolidation in the packaging industry, which has faced falling demand and rising costs after a surge in demand during the Covid pandemic.
Michael King, president and chief executive officer of Pactiv Evergreen, said the board and leadership team evaluated a range of opportunities and were confident the transaction maximised shareholder 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,” he said.
“We look forward to this next exciting chapter,” King said.
Upon the completion of the transaction, Pactiv Evergreen will become a privately held company, and its common stock will no longer be listed on Nasdaq.
The combined company will be led by Novolex chairman and chief executive Stan Bikulege.
This transaction is supported by funds managed by affiliates of Apollo, the majority shareholder of Novolex since 2022, and Canada Pension Plan Investment Board, which will contribute about US$1b and become a significant minority shareholder in the post-merger company.
Novolex develops and manufactures diverse packaging products for multiple industries in the foodservice, delivery and carryout, food processor and industrial markets that touch nearly every aspect of daily life.
With more than 10,000 employee families, Novolex operates 56 manufacturing facilities in North America and Europe, including two world-class plastic film recycling centers.
Pactiv Evergreen is a leading manufacturer and distributor of fresh foodservice and food merchandising products and fresh beverage cartons in North America.
Apollo is a global asset manager with US$733b under management.
Jamie Gray is an Auckland-based journalist, covering the financial markets and the primary sector. He joined the Herald in 2011.
