Novolex has agreed to acquire Packaging Dynamics, in a move to offer a wide range of paper and plastic flexible packaging products for various industries.
A definitive merger agreement to this effect was signed between both companies.
Owned by funds managed by Kohlberg & Company, 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.
Packaging Dynamics’ operating business units are BagcraftPapercon, De Luxe, International Converter, General Packaging Products and Pac Paper.
The $1.9bn combined company will operate under the Novolex name and will have 35 manufacturing locations in North America and a plastic recycling facility. It will employ more than 5,100 employees.
This is the third acquisition by Novolex, which earlier acquired portions of the North American Flexible Packaging division of Amsterdam-based Clondalkin Group in 2013 and Duro Bag Manufacturing Company.
Packaging Dynamics CEO Roger Prevot said: "This combination of truly complementary businesses under the Novolex banner creates exciting new opportunities to continue building a world-class organisation with industry-leading brands and significant growth potential."
Novolex was acquired by Wind Point Partners in 2012.
Wind Point managing director Alex Washington said: "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."
Image: Packaging Dynamics manufactures flexible, paper-based food packaging products. Photo: courtesy of Mister GC / FreeDigitalPhotos.net.