10:28 AM EST, 12/09/2024 (MT Newswires) -- Pactiv Evergreen ( PTVE ) agreed to be acquired and taken private by Novolex in an all-cash deal worth $6.7 billion, including debt, according to a joint Monday statement.

Shareholders of Pactiv Evergreen ( PTVE ) will receive $18 per share in cash, reflecting a 49% premium to the packaging products maker's two-month average price as of Dec. 2, the last trading day before media speculation began about a potential deal. Pactiv Evergreen's ( PTVE ) stock jumped 19% in Monday trading.

The transaction, which requires approval from regulators, is expected to complete in the middle of next year. Pactiv Evergreen ( PTVE ) majority shareholder Packaging Finance has approved the deal. Pactiv will no longer trade publicly once the deal closes.

"The board and leadership team evaluated a range of opportunities and are confident this transaction maximizes shareholder value and is the best path forward for all stakeholders," Pactiv Evergreen ( PTVE ) Chief Executive Michael King said.

The companies expect the combined entity's asset base to include an extensive manufacturing footprint and an expanded distribution network. The transaction is supported by Novolex's majority shareholder, Apollo Global Management ( APO ) , and Canada Pension Plan Investment Board, which will invest about $1 billion and become a "significant minority" shareholder in the combined company, according to the statement.

"This transaction reflects the continuation of our long-term growth strategy," Novolex CEO Stan Bikuleg, who will lead the combined company, said. "Pactiv Evergreen's ( PTVE ) strong product portfolio, along with their talented team, will complement and add significant depth to Novolex's diverse packaging solutions."

Last month, Pactiv Evergreen ( PTVE ) reported third-quarter adjusted earnings of $0.36 per share, up from $0.32 a year earlier, while revenue declined 3% to $1.33 billion. At the time, the company said it expected 2024 adjusted earnings before interest, taxes, amortization and depreciation to be in a range of $800 million to $810 million.

"As the packaging industry continues to evolve, bringing together these two talented teams will better position the combined company with enhanced and complementary capabilities to meet shifting consumer demands and provide the highest quality products and services to customers," said Rob Seminara and Peter Sinensky, partners at Apollo.