Packaging company Novolex has completed its $6.7 billion acquisition of Illinois-based Pactiv Evergreen in an all-cash deal signed in December. The food, beverage and packaging products company will be headquartered in Charlotte, the company said.
Novolex has more than 100 locations and 20,000 employees, mostly in the U.S., but also in Mexico, Canada and Europe. The company’s only N.C. operation is its south Charlotte headquarters office, though it has many plants in the Southeast and was previously based in Greenville, South Carolina.
The company has 120 product categories, 250 brands and more than 39,000 stock-keeping units to help vendors track inventory. The business was acquired by private equity giant Apollo Global Management in 2022. The seller, Carlyle Group, retained a minority stake in the company.
In 2023, Pactiv Evergreen shut down a paper mill in Canton that had been in operation for more than 100 years. In February, Pactiv agreed to pay $6.25 million to settle a lawsuit filed by the state over incentives received by the company. Canton and Haywood County will receive $5.75 million, with $500,00 going to the state. In January, Pactiv Evergreen announced it had sold the mill to St. Louis-based Spirtas Worldwide.
More than 1,000 people worked at the Canton mill when it closed.
Pactiv Evergreen shareholders received $18 per share in cash, a 49% premium to the two-month weighted average trading price as of Dec. 2, the last trading day prior to media reports regarding a potential transaction.
The acquisition will help Novolex accelerate growth and expand products, CEO Stan Bikulege says in a release. He has been the company’s CEO since 2008.
“Together, we’ll continue to solidify our position and deliver in the markets we serve by optimizing operations, accelerating product innovation and driving commercial excellence while maintaining sustainable growth across the business,” Bikulege says.
Former Pactiv CEO Michael King will continue to serve as an adviser to Novolex.
Barclays acted as lead financial adviser and Paul, Weiss, Rifkind, Wharton & Garrison acted as legal adviser to Novolex. Morgan Stanley & Co. and RBC Capital Markets also acted as financial advisers to Novolex.
Goldman Sachs & Co. and Lazard Frères & Co. acted as financial advisers and Paul Hastings acted as legal adviser to Pactiv Evergreen.