Novolex buying consumer goods supplier Waddington Group for $2.3 billion

Plastic packaging products provider Novolex is acquiring U.S.-based consumer goods company Newell Brands’ Waddington Group packaging unit for approximately US$2.3 billion.

With 16 sites spread across the U.S., Canada, Ireland, the Netherlands, and the UK, Waddington manufactures and markets packaging and disposables for the foodservice, bakery, deli and confectionery markets.

The Covington, Kentucky-based company has different brands, including Eco-Products, which serves the green packaging segment, Polar Pak containers for drink-ware and cutlery and WNA for upscale disposable plastic products.

The deal will reportedly enable Novolex to strengthen growth prospects through the addition of complementary product lines and the expansion of sustainable packaging products. According to market research firm Freedonia Group, the acquisition will produce a unit with more than US$1 billion in U.S. sales of single-use foodservice items such as takeout containers, cups, and bags.

“We are excited to add the Waddington Group to the Novolex family,” Stan Bikulege, chairman and CEO of Novolex, said in a statement. “This is a period of strategic growth and development at Novolex. Adding rigid plastic food packaging and an expanded range of sustainable packaging products have been key strategic priorities, and the Waddington Group has long been our top acquisition target.”

Following the acquisition. Novolex will have around 10,000 employees and 62 manufacturing plants around the world.

Novolex has acquired eight firms, including Waddington, in the past six years. The company provides packaging solutions for retail, grocery, food service, hospitality, institutional and industrial markets.