Apollo-Backed Novolex to Buy Pactiv Evergreen for $3.22 Billion
Deal, valued at $6.7 billion including debt, is slated to close in mid-2025.
Novolex, a packaging company backed by Apollo Global Management, struck a deal to buy publicly traded Pactiv Evergreen for around $3.22 billion
The companies Monday said Novolex will pay $18 a share in cash for Pactiv, a nearly 23% premium to Friday’s closing price of $14.66 for the Lake Forest, Ill., company and some 32% above the company’s closing price Dec. 2, before published reports said Apollo was exploring a takeover.
Pactiv and Novolex said the deal, valued at $6.7 billion including debt, is slated to close in mid-2025.
New York-based Apollo acquired a majority stake in Novolex in 2022 from fellow private-equity firm Carlyle Group. Carlyle retained a minority stake in the company, according to a press release issued at the time.
Pactiv and Novolex said Canadian pension giant Canada Pension Plan Investment Board will contribute about $1 billion to the deal and will become a significant minority shareholder in the combined company.
New Zealand billionaire Graeme Hart owns more than 75% of Pactiv through Packaging Finance Ltd., which has approved the transaction, Pactiv and Novolex said.