Novolex and Packaging Dynamics Corporation have entered into a definitive merger agreement whereby Novolex will acquire Packaging Dynamics.
The $1.9 billion revenue company will operate under the Novolex name and will be comprised of 35 manufacturing locations in North America, a plastic recycling facility and over 5,100 employees. The transaction is expected to close in the fourth quarter of 2014 after required regulatory approvals are received.
Packaging Dynamics, which is owned by funds managed by Kohlberg & Company, manufactures a broad portfolio of 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. Packaging Dynamics’ operating business units are BagcraftPapercon, De Luxe, International Converter, General Packaging Products and Pac Paper.
Financing for the transaction will facilitate the purchase price and retire Packaging Dynamics’ existing senior secured notes. The debt facility is fully underwritten and will be jointly arranged by Deutsche Bank, GE Capital, Macquarie Capital and BMO Capital Markets. Deutsche Bank, BMO Capital Markets, DLA Piper and Nelson, Mullins, Riley & Scarborough acted as advisors to Wind Point. Harris Williams & Co. and Ropes & Gray LLP acted as advisors to Packaging Dynamics.
Published in the December 2014 Edition of American Recycler News