Novolex to acquire Packaging Dynamics

Novolex, Hartsville, South Carolina, has announced plans to acquire Packaging Dynamics Corp., Chicago, creating a company with annual revenue of $1.9 billion. If the acquisition is approved, the combined companies will offer a broad and complementary range of flexible paper and plastic packaging products across foodservice, grocery, retail, food manufacturing, industrial and distribution end markets.

The newly formed company will operate under the Novolex name and be comprised of 35 manufacturing locations in North America, as well as a plastics recycling facility. The transaction is expected to close in the fourth quarter of 2014, Novolex says.

Novolex, formerly known as Hilex Poly, changed its name Nov. 3, 2014. The company was acquired by the private equity firm Wind Point Partners in 2012.

In announcing the acquisition, Novolex CEO Stan Bikulege says, “Packaging Dynamics has an outstanding reputation for product innovation and allows Novolex to significantly expand our presence in the foodservice market.”

Bikulege continues, “Packaging Dynamics’ ecofriendly paper packaging products also meet growing consumer demand for green packaging and advances Novolex’s objectives for packaging choice and sustainability leadership. Also, we believe joining our two companies creates value for our customers through operational excellence and customer-focused service.”

Packaging Dynamics is Novolex’s third acquisition. Novolex acquired portions of the North American flexible packaging division of Amsterdam-based Clondalkin Group in 2013 and Duro Bag Manufacturing Co. in early 2014.

Alex Washington, a managing director at Wind Point, says, “Our investment thesis was to build upon the strong operational platform of Hilex Poly and through acquisitions and organic growth to create a broader, more diversified flexible packaging leader. The addition of Packaging Dynamics is an ideal next step in that transformation.”

Packaging Dynamics manufactures flexible, paper-based food packaging products, including specialty bags, specialty sheets and wraps, interfolded tissue, pan liners and freezer/butcher paper products, as well as specialty laminated foil products.