Novolex Holdings Inc., a diverse packaging manufacturer well known for making those ubiquitous plastic shopping bags, is getting a new majority owner in a deal reportedly valued at $6 billion.
The purchase continues a long transactional history between private equity firms for the company known as Hilex Poly before a 2014 name change.
This time around, Apollo Global Management Inc. is taking a majority share of Novolex while Carlyle Group retains a minority portion, the firms said Feb. 14.
Novolex makes a variety of plastic bags through its Hilex Poly division that touch the everyday lives of consumers, including so-called T-shirt retail bags, produce bags and specialty products such as ice bags.
Other business units include Heritage Bag, a maker of institutional garbage can liners and medical waste bags. Novolex also operates Waddington Group, a thermoformed packaging maker that has operations in both North America and Europe. The company's portfolio has expanded in recent years to include paper fiber-based packaging as well.
Novolex is No. 9 in the new Plastics News ranking of North American thermoformers with an estimated $500 million in annual sales for the region. It ranks as No. 6 among film makers in North America, with $1.5 billion in annual sales.
Carlyle Group purchased Novolex from majority owner Wind Point Partners and minority owner TPG Growth in late 2016. At that the time, Novolex CEO Stan Bikulege called the move "the next big step for Novolex." Wind Point took its majority stake from TPG in a 2012 deal.