Apollo-owned Novolex to acquire Pactiv for USD 6.7-billion

Apollo Global Management-owned packaging company Novolex has inked a definitive agreement to acquire rival Pactiv Evergreen for USD 6.7-billion, leading to the merger of a combined entity.

The deal is expected to be finalised by mid-2025. Commenting on the merger, the companies shared that the tie-up would make them a leading manufacturer in the food and beverage packaging business with more than 250 brands. The combined entity will be led by Novolex chair and CEO Stan Bikulege. 

Under the agreement of the merger, Pactiv Evergreen shareholders will receive USD 18 per share in cash. The deal represents a 49% premium over the two-month average trading price before speculation of the deal surfaced on 2 December 2024.

The merger has been financially backed by Apollo Funds and the Canadian Pension Plan Investment Board (CPP Investments), contributing approximately USD one-billion and securing a minority stake post-merger. 

The board of directors of Pactiv Evergreen approved the transaction, with regulatory approvals and customary closing conditions pending. The majority shareholder of Pactiv Evergreen, Packaging Finance has approved the deal that negates the need for shareholder consent. 

Upon the completion of the merger, Pactiv Evergreen will transition to a privately held company; its shares will be delisted from the Nasdaq Composite stock market index. 

WhatPackaging? readers will recall that Swiss company Amcor acquired the American Berry Global Group in a USD 8.4-billion deal in November, and a month before that International Paper shareholders agreed to the DS Smith "combination." Novolex's acquisition of Pactiv Evergreen from Carlyle is the most recent mega-deal. Carlyle will retain a minority stake in the company.