Novolex, which has 10,000 employees and 57 manufacturing facilities in North America and Europe, produces diverse packaging products for the foodservice, delivery and carryout, food processor and industrial markets
Apollo has agreed to acquire packaging products manufacturer Novolex. (Credit: Jens P. Raak from Pixabay)
The funds managed by Apollo Global Management affiliates have agreed to purchase the majority stake in packaging products manufacturer Novolex from funds managed by Carlyle for an undisclosed sum.
Novolex is involved in the production of diverse packaging products for the foodservice, delivery and carryout, food processor and industrial markets.
Carlyle will hold a minority interest in Novolex, which produces products using fibre, renewable, recycled and bio-based materials, as well as resin that can be recycled and composted.
Apollo partner Rob Seminara said: “The company has a strong management team and is poised to capitalise on growth across food delivery and e-commerce as well as increasing demand for environmentally responsible and compostable products. Importantly, Novolex shares our commitment to sustainability.”
With over 10,000 employees across the globe, Novolex manages 57 manufacturing facilities in North America and Europe, including two advanced plastic recycling facilities.
The company’s customers consist of major brands in the dine-in and to-go restaurant, grocery, retail, sanitation and janitorial, construction, food processing and related industries.
Leveraging Apollo’s global resources and experience in the packaging sector, Novolex aims to strengthen its leadership position by expanding its blue-chip customer relationships.
Novolex chairman and CEO Stan Bikulege said: “This transaction is a milestone in the Novolex growth story and for the 10,000 Novolex employee families who contribute to our Company every day.
“Apollo offers tremendous resources and expertise and brings significant experience in the packaging industry to the table that will enable us to continue to thrive on the next leg of our journey.”
Subject to regulatory approvals, the deal is expected to be completed during the second quarter of this year.
Deutsche Bank, Evercore and Barclays served as financial advisors, while Paul, Weiss, Rifkind, Wharton & Garrison acted as counsel to Apollo on the transaction.
Credit Suisse Group and Goldman Sachs served as financial advisors, while Latham & Watkins and Nelson Mullins Riley & Scarborough acted as counsel to the packaging firm and Carlyle.