Novolex (Charlotte, NC), a North American manufacturer of paper and plastic flexible packaging products, has acquired Heritage Bag Co. (HBC; Dallas, TX), a manufacturer of plastic can liners and other packaging products. The transaction is expected to be finalized in the second quarter.
“I believe becoming part of Novolex will allow Heritage and its employees to continue to prosper and grow,” Carl Allen, CEO of Heritage states. “It is an ideal fit. Novolex leadership is very much aligned with our principles at Heritage. They are committed to employees’ welfare as well as the communities where they live and work. That’s very important to me and it was an essential requirement for the transaction."
“We are excited about the addition of Heritage employees to the Novolex Family,” Stan Bikulege, Chairman and CEO of Novolex states. “This is very important to our future. The HBC Team and products are a great fit for Novolex and we will soon integrate our existing can liner business with the HBC Team. We are bringing aboard an outstanding legacy created by Carl Allen and his team, one that includes nearly 800 dedicated employees and their families as well as long-term partnerships with excellent distribution partners and customers.”
HBC is Novolex’s fifth acquisition since private equity firm Wind Point Partners acquired Novolex (formerly Hilex Poly) in 2012, in partnership with Chairman and CEO Stan Bikulege. TPG Growth is also part of the ownership of Novolex and made a minority investment in the business in November of 2015.
Recent Novolex acquisitions include Wisconsin Film & Bag (October 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 HBC, Novolex is now a $2.3 billion revenue company with over 6,000 employees and 43 manufacturing locations in North America, including two world-class recycling facilities.