Pactiv Evergreen Clears Regulatory Hurdle for Novolex Acquisition

Pactiv Evergreen Inc. (NASDAQ: PTVE) announced today that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 has expired in connection with its planned acquisition by Novolex®. This significant milestone brings the companies one step closer to finalizing the transaction, which is expected to close in the second quarter of 2025, subject to receipt of foreign antitrust approvals and satisfaction of other customary closing conditions.

The acquisition, announced in December 2024, involves Novolex acquiring Pactiv Evergreen for $18.00 per share in cash. The transaction is expected to create a leading manufacturer in food, beverage, and specialty packaging products, with a diverse substrate offering and an expansive manufacturing footprint across North America. The combined company will have over 250 brands and 39,000 combined SKUs, establishing one of the most diverse substrate sets in the packaging industry.



The acquisition is expected to deliver several strategic benefits, including:

1. Greater choice and improved service: The combined company will offer customers a broader range of packaging solutions, including multiple types of fiber, resin, and post-consumer recycled content. This will enable the company to better serve customers, from large, blue-chip brands to small businesses, and improve its competitive position in the industry.
2. Accelerated product innovation: By combining the respective experience in materials science, R&D, and customizable product development capabilities of both companies, the combined entity will be better positioned to fulfill evolving customer demands for convenient, durable, protective, and user-friendly packaging.
3. Enhanced sustainability efforts: The combined company will have greater resources to invest in R&D for materials and sustainability strategies, including the production of recyclable, compostable, and reusable packaging. This commitment to sustainability is backed by enterprise-wide emission reduction targets designed to reduce the impact of packaging on the environment.
4. Expanded manufacturing footprint and distribution capabilities: The combined company will have a broad manufacturing footprint across the U.S., Canada, and Mexico, enabling it to better serve customers and expand its reach. This expanded footprint will allow the company to improve service to customers, including top household names in grocery, retail, quick- and full-service restaurants, foodservice, food and beverage producers, and industrials.

The acquisition is expected to have a significant impact on the broader packaging industry landscape, as it combines two major players with complementary product portfolios and extensive distribution networks. This transaction will create a leading manufacturer in food, beverage, and specialty packaging products, with a diverse substrate offering and an expansive manufacturing footprint across North America. The combined company will be well-positioned to capitalize on shifting consumer demands and capture a larger share of the growing food and beverage packaging market, ultimately driving long-term growth and success.

In conclusion, the expiration of the Hart-Scott-Rodino waiting period is a crucial step towards finalizing the acquisition of Pactiv Evergreen by Novolex. This transaction is expected to create a leading manufacturer in the food and beverage packaging industry, with a diverse substrate offering and an expansive manufacturing footprint across North America. The combined company will be well-positioned to drive innovation, improve sustainability efforts, and better serve its customers, ultimately driving long-term growth and success in the competitive packaging industry landscape.