Novolex and Pactiv Evergreen to Merge, Forming a Packaging Powerhouse
Deal News | Dec 09, 2024 | Globenewswire
Novolex and Pactiv Evergreen Inc. have announced a merger to become a leading manufacturer in food, beverage, and specialty packaging products. This alliance aims to create a diverse product offering, merging their expansive manufacturing capabilities and distribution networks to service a wide range of customers. The deal, supported by Apollo Funds and CPP Investments, involves Novolex acquiring Pactiv Evergreen for $18.00 per share, valuing the transaction at $6.7 billion. Upon conclusion, Pactiv Evergreen will operate as a privately held company. Both companies have a strong focus on innovation, sustainability, and customer-centric services, with a shared goal to enhance growth and address evolving market demands. The completion of this acquisition, subject to regulatory approvals, is anticipated by mid-2025.
Sectors
- Packaging Industry
- Manufacturing
- Private Equity
Geography
- North America – The primary operations of both companies are located in North America, which is a key market for the merged entity's manufacturing and distribution footprint.
- United States – Both companies are headquartered in the U.S., and the merger deal is centered around their operations within the country.
Industry
- Packaging Industry – The article focuses on two companies in the packaging industry, Novolex and Pactiv Evergreen, which are merging to become significant players in food and beverage packaging.
- Manufacturing – Both companies have extensive manufacturing operations and capabilities that are central to the merger to enhance product offerings.
- Private Equity – The merger deal involves substantial backing from private equity entities, specifically Apollo and CPP Investments.
Financials
- $6.7 billion – The total value of the acquisition deal for Pactiv Evergreen, inclusive of net debt.
- $18.00 per share – The price per share offered for Pactiv Evergreen in the all-cash transaction.
- 49% – The premium on the two-month unweighted average trading price offered to Pactiv Evergreen shareholders.
- US$1 billion – The contribution by CPP Investments to the transaction.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Novolex | Acquiring Company | Company | A leader in packaging with a focus on innovation and sustainability, acquiring Pactiv Evergreen. |
| Pactiv Evergreen Inc. | Target Company | Company | A manufacturer of food and beverage packaging products, being acquired by Novolex. |
| Apollo | Majority Shareholder of Novolex | Company | A global alternative asset manager providing financial backing for the acquisition. |
| CPP Investments | Investor | Company | Contributing $1 billion and post-transaction, will become a significant minority shareholder. |
| Barclays Bank PLC | Financial Advisor to Novolex | Company | Advising Novolex on the financial aspects of the acquisition. |
| Paul, Weiss, Rifkind, Wharton & Garrison LLP | Legal Advisor to Novolex | Company | Providing legal counsel to Novolex. |
| Morgan Stanley & Co. LLC | Financial Advisor to Novolex | Company | Assisting Novolex in financial advice for the acquisition. |
| RBC Capital Markets, LLC | Financial Advisor to Novolex | Company | Supporting Novolex in financial advisory. |
| Goldman Sachs & Co. LLC | Financial Advisor to Pactiv Evergreen | Company | Advising Pactiv Evergreen on the financial aspects of the merger. |
| Lazard Frres & Co. LLC | Financial Advisor to Pactiv Evergreen | Company | Providing financial advisory services to Pactiv Evergreen. |
| Paul Hastings LLP | Legal Advisor to Pactiv Evergreen | Company | Serving as legal advisors for Pactiv Evergreen. |