Novolex Holdings and Pactiv Evergreen Complete Merger Deal, Reshaping North American Packaging Market

In a transformative move that solidifies Novolex Holdings’ position as a packaging industry powerhouse, the company has finalized plans to acquire Pactiv Evergreen Inc. (NASDAQ: PTVE) in an all-cash transaction valued at $6.7 billion. Under the agreement, Pactiv Evergreen shareholders will receive $18.00 per share—a 49% premium to the pre-announcement trading price—establishing one of the most significant consolidations in the food and beverage packaging sector.

The Strategic Rationale Behind the Deal

The merger unites two complementary industry players with distinct strengths across multiple substrate types and manufacturing capabilities. Novolex Holdings brings deep expertise in foodservice and delivery packaging, while Pactiv Evergreen contributes a robust fresh food merchandizing and beverage carton portfolio. Together, the combined entity will command over 250 brands and 39,000 SKUs, creating an unparalleled substrate diversity that spans fiber, resin, and post-consumer recycled content offerings.

This integration addresses a critical market trend: customers increasingly demand partners capable of delivering comprehensive packaging solutions across geographies and product categories. With manufacturing facilities spanning the United States, Canada, and Mexico, the merged company will operate one of North America’s most extensive production and distribution networks, enabling seamless service to everyone from Fortune 500 enterprises to regional food producers.

Innovation and Sustainability as Core Drivers

Both organizations have demonstrated commitment to R&D and operational excellence. By combining their materials science capabilities and customizable product development expertise, Novolex Holdings will accelerate the development of next-generation packaging—recyclable, compostable, and reusable options backed by enterprise-wide emission reduction targets. This positions the combined company to capture growing demand from environmentally conscious brands and retailers.

Financial Structure and Ownership

The transaction is underwritten by significant institutional backing. Funds managed by Apollo, which has held majority ownership of Novolex Holdings since 2022, will continue supporting the company. Additionally, Canada Pension Plan Investment Board (CPP Investments) will inject approximately $1 billion and emerge as a substantial minority shareholder in the post-merger entity.

Novolex Holdings Chairman and CEO Stan Bikulege will lead the combined organization. The deal carries no financing conditions and is anticipated to complete by mid-2025, pending customary regulatory approvals and closing requirements. The transaction has already secured board approval from Pactiv Evergreen and its controlling shareholder, Packaging Finance Limited.

Market Implications

The 39,000-SKU portfolio and expanded geographic footprint position the merged company to serve a diverse customer base—from quick-service restaurants and full-service dining establishments to food manufacturers, beverage producers, and industrial clients. By consolidating these capabilities, Novolex Holdings strengthens its competitive moat and enhances service responsiveness across North America’s fragmented packaging supply chain.