North Carolina-based Novolex® and Illinois-based Pactiv Evergreen Inc. have agreed to merge, creating a leading manufacturer in food, beverage, and specialty packaging products, Novolex said in a news release from December 9, 2024.
“This transaction reflects the continuation of our long-term growth strategy to create the industry’s most innovative, sustainable, and customer-focused company,” said Stan Bikulege, chairman and CEO of Novolex®, in a statement.
“Pactiv Evergreen’s strong product portfolio, along with their talented team, will complement and add significant depth to Novolex®’s diverse packaging solutions.”
Bikulege will lead the combined company.
Michael King, president and CEO of Pactiv Evergreen, said in a statement that the board and leadership team at his company evaluated a range of opportunities “and are confident this transaction maximizes shareholder value and is the best path forward for all stakeholders.”
Pactiv Evergreen Inc. trades on Nasdaq under the symbol PTVE. Its stock was up more than 18% at the close of the market on December 19, 2024, settling at $17.36. The 52-week range included a low of $8.83 and high of $17.61. After the deal closes, Pactiv Evergreen will become a privately held company, and its common stock will no longer be listed on Nasdaq.
Under the terms of the agreement, Novolex® will acquire Pactiv Evergreen for $18 per share in an all-cash transaction valued at $6.7 billion, inclusive of Pactiv Evergreen’s net debt as of September 30, 2024.
“The transaction consideration represents a 49% premium to the two-month unaffected volume weighted average trading price as of December 2, 2024, the last trading day prior to media reports regarding a potential transaction,” according to the news release.
This transaction is supported by funds managed by affiliates of Apollo, the majority shareholder of Novolex since 2022, and Canada Pension Plan Investment Board, which will contribute approximately $1 billion and will become a significant minority shareholder in the post-merger company.
The deal is expected to close in mid-2025.