Novolex will acquire Packaging Dynamics to create a $1.9bn company in paper and plastic flexible packaging. The combined companies, operating under the Novolex name, will offer products across foodservice, grocery, retail, food manufacturing, industrial and distribution end markets.
Novolex says the deal will ‘significantly expand’ its presence in the foodservice market, adding that Packaging Dynamics’ eco-friendly paper products will meet growing consumer demand for green packaging.
The $1.9bn revenue company will comprise of 35 manufacturing locations in North America, a plastic recycling facility, and 5,100 employees.
It is anticipated the transaction will close in the fourth quarter of 2014. Packaging Dynamics is Novolex’s third acquisition. It took over portions of Clondalkin Group’s North American Flexible Packaging Division in 2013 and Duro Bag Manufacturing Company in 2014.