Novolex, Pactiv Evergreen to Form Packaging Powerhouse in $6.7-billion Deal

A new North American packaging powerhouse combines Novolex and Pactiv Evergreen in a deal valued at $6.7 billion.

Novolex, owned by Apollo Global Management, is paying $18 a share in cash for Pactiv, making the total cost about $3.22 billion. Novolex shares closed at $14.66 on Dec. 6. Apollo has been the majority shareholder of Novolex since 2022. Canada's Pension Plan Investment Board will contribute about $1 billion to the transaction to become a significant minority shareholder in the combined company.

The deal, which combines over 250 brands and 39,000 SKUs, including multiple types of fiber, resin, and post-consumer recycled content, is set to close by mid-2025.

Novolex develops and manufactures packaging for the food service, delivery and carryout, food processor, and industrial markets. Pactiv Evergreen specializes in fresh food service and food merchandising products and fresh beverage cartons — many made with recycled, recyclable, or renewable materials — for restaurants, food service distributors, retailers, food and beverage producers, packers, and processors.

“This transaction reflects the continuation of our long-term growth strategy to create the industry’s most innovative, sustainable, and customer-focused company,” said Novolex CEO Stan Bikulege. “Pactiv Evergreen’s strong product portfolio, along with their talented team, will complement and add significant depth to Novolex’s diverse packaging solutions. 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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Both companies “serve attractive end markets, and . . . have made tremendous progress in recent years to enhance their operations and strengthen their focus on product innovation and sustainability leadership,” said Apollo partners Rob Seminara and Peter Sinensky.