Novolex (Hartsville, SC), a portfolio company of the Carlyle Group and an industry leader in packaging, has announced that it will acquire the Waddington Group (Covington, KY) from Newell Brands Inc. (Hoboken, NJ) for $2.3 billion. The transaction is expected to close in approximately 60 days.
The acquisition will produce a unit with more than $1 billion in U.S. sales of single-use foodservice items such as takeout containers, cups and bags, according to the Freedonia Group, a Cleveland-based market research firm. Combined, these companies will create a player in the market with a product range as broad as market leaders Dart Container and Pactiv Foodservice. According to Freedonia Group Packaging Analyst Chad Henry, “The strategic move by Novolex capitalizes on two trends that stand to enjoy fast growth the next five years: The increasing popularity of takeout, delivery and eating on-the-go, and growing consumer and restaurant demand for sustainable food packaging.”
The Waddington Group is a global manufacturer and marketer of packaging and disposables serving the foodservice, bakery, deli, produce and confectionery markets. Novolex is a leading provider of packaging solutions serving retail, grocery, foodservice, hospitality, institutional and industrial markets, according to a release from Novolex.
“We are excited to add the Waddington Group to the Novolex family,” said Stan Bikulege, Chairman and CEO of Novolex. “This is a period of strategic growth and development at Novolex. Adding rigid plastic food packaging and an expanded range of sustainable packaging products have been key strategic priorities, and the Waddington Group has long been our top acquisition target. The company brings Novolex world-class product innovation, long-term customer relationships, and, most importantly, adds to our talented and dedicated team. We are excited to have Waddington CEO John Wurzburger and his team join the Novolex family,” said Bikulege.
The Waddington Group’s footprint includes 16 sites in the U.S., Canada, Ireland, Netherlands and U.K. and approximately 3,000 employees worldwide. “The Waddington Group is a great fit for Novolex,” Bikulege added. “The company has a strong track record of developing innovative packaging solutions and, like Novolex, is a market leader in sustainability.”
The acquisition of the Waddington Group is Novolex’s eighth since 2012, which include Shields Bag & Printing (January 2018), Burrows Packaging (December 2016), Heritage Bag (April 2016), Wisconsin Film & Bag (September 2015), Packaging Dynamics (December 2014), Duro Bag (July 2014) and a portion of Clondalkin Group’s North American Flexible Packaging Division (April 2013). With the addition of the Waddington Group, Novolex will have approximately 10,000 team members and 62 manufacturing plants worldwide.