Novolex acquires Heritage Bag Co.

Chicago-based Wind Point Partners has announced that Hartsville, South Carolina-based Novolex, one of its portfolio companies, has acquired Heritage Bag Co. (HBC). Roanoke, Texas-based HBC is a manufacturer of plastic can liners and other packaging products based.

HBC is Novolex’s fifth acquisition since Wind Point acquired the company, formerly known as Hilex Poly, in 2012 in partnership with Novolex Chairman and CEO Stan Bikulege. TPG Growth also is part owner of Novolex as of November 2015 through a minority investment in the business. With the addition of HBC, Novolex is now a $2.3 billion revenue company with more than 6,000 employees and 43 manufacturing locations in North America, including two recycling facilities.

“Joining Novolex will allow Heritage and its employees to continue to prosper and grow,” Carl Allen, CEO of Heritage, says. “It is an ideal fit. Novolex’s leadership is very much aligned with our principles at Heritage. They are committed to employees’ welfare as well as to the communities where they live and work. That’s very important to me and thus was an essential requirement for the transaction.”

“We are excited about the addition of the Heritage employees to the Novolex family,” Bikulege says. “This acquisition is very important to our future. The HBC team and products are a great fit for Novolex that will allow us to integrate our existing can liner business with the HBC team. We are bringing aboard an outstanding legacy built by Carl Allen and his team, which includes nearly 800 dedicated employees and their families as well as established relationships with excellent distribution partners and customers.”

Alex Washington, a managing director at Wind Point, adds, “The acquisition of Heritage Bag Co. is an excellent addition to Novolex’s product portfolio. I commend Carl Allen on HBC’s outstanding reputation for quality products and superior service to customers, which we plan to build upon.”

Novolex’s previous acquisitions include Wisconsin Film & Bag (October 2015), Packaging Dynamics (December 2014), Duro Bag (July 2014) and a portion of Clondalkin Group’s North American Flexible Packaging Division (April 2013).

Antares Capital and CPPIB Credit Investments III Inc. served as joint lead arrangers for the senior debt financing that facilitated the acquisition. DLA Piper LLP and Nelson, Mullins, Riley & Scarborough acted as Novolex’s legal advisors in connection with the acquisition. Bank of America Merrill Lynch and Haynes and Boone LLP acted as advisors to Heritage Bag Co.