US-based packaging products manufacturer Novolex has reached an agreement to buy Flexo Converters USA for an undisclosed amount.
Flexo specialises in manufacturing stock, custom and recycled paper bags and sacks for restaurants and foodservice distributors.
The company has manufacturing facilities in Meriden, Connecticut, and Monroe, Georgia.
Once the transaction is completed, Flexo products will trade under the Novolex Duro Bag brand.
Last year, Flexo witnessed an increase in its sales to restaurants and foodservice distributors.
Duro will use Flexo’s production capacity to fulfil growing demand for paper bags from foodservice and grocery customers for takeaways as well as for delivery packaging.
The deal, expected to be completed in the next 60 days, also includes some of Flexo’s affiliates.
Flexo’s eligible full-time employees are expected to join Novolex after the deal is completed.
Novolex chairman and CEO Stan Bikulege said: “Flexo is an exciting addition to our company, and we welcome the skilled and committed team to our family.
“Flexo’s strong reputation for high-quality products, on-time delivery and value-added services will support us in pursuing future growth opportunities for all of our company.”
Flexo operations vice-president and chief operating officer Anik Patel said: “Creating quality products and meeting customer demands has been part of the Flexo story since our family started in the industry 40 years ago.
“We are excited to join the Novolex family, with its reputation of leadership and innovation in our industry, as well as its history of welcoming independent businesses and their employees to the integrated organisation.”
A portfolio company of The Carlyle Group, Novolex produces packaging products for the foodservice, delivery and takeaway, food processor and industrial markets.
In December 2016, Carlyle acquired a majority stake in the company.
In February, Novolex announced that its products would start using the How2Recycle Store Drop-off label.