Novolex, a packaging manufacturing company owned by buyout firm Carlyle Group, has agreed to acquire Waddington Group, a global consumer and commercial package manufacturing firm, from Newell Brands for $2.3bn.
Waddington Group is engaged in manufacturing and marketing of packaging and disposables serving the foodservice, bakery, deli, produce and confectionery markets.
Employing approximately 3,000 people, the firm operates 16 sites in the US, Canada, Ireland, The Netherlands and the UK.
Novolex provides packaging solutions for retail, grocery, food service, hospitality, institutional and industrial markets.
Novolex chairman and CEO Stan Bikulege said: “This is a period of strategic growth and development at Novolex. Adding rigid plastic food packaging and an expanded range of sustainable packaging products have been key strategic priorities, and The Waddington Group has long been our top acquisition target.”
Upon completion of the deal, which is expected in approximately 60 days, Novolex will have approximately 10,000 employees and 62 manufacturing facilities worldwide.
The sale is part of Newell Brands’ Accelerated Transformation strategy, which aims to create a simpler, faster, stronger consumer-focused portfolio of brands.
Newell Brands CEO Michael Polk said: “This mutually beneficial deal allows the Waddington team to unlock its full potential under a new owner who is committed to the packaging category, and provides Newell Brands the opportunity to take an important first step forward in our Accelerated Transformation Plan.”
The transaction is subject to customary closing conditions, including regulatory approval. J.P. Morgan Securities acted as financial advisor to Newell Brands on the transaction.
Novolex’s brands include Hilex Poly, Duro Bag, Bagcraft Packaging, De Luxe Packaging, General Packaging Products, International Converter, Shields, Heritage Bag, and Burrows Packaging.