UPDATE -- Apollo Funds to Acquire Majority Stake in Novolex
February 14 2022 - 9:24AM
Apollo (NYSE: APO) and Novolex Holdings LLC ("Novolex" or the
"Company"), a leading global manufacturer of diverse packaging
products for the foodservice, delivery and carryout, food processor
and industrial markets, today announced that funds managed by
Apollo affiliates (the “Apollo Funds”) have entered into a
definitive agreement to acquire the majority of the Company from
funds managed by Carlyle (NASDAQ: CG). Carlyle will retain a
minority stake in the Company. Financial terms were not disclosed.
Novolex provides customers with packaging innovation, choice and
sustainability. The Company manufactures products made with fiber,
renewable, recycled and bio-based materials and resin that are
designed to be recycled and composted. The Company is comprised of
more than 10,000 employees worldwide and operates 57 manufacturing
facilities in North America and Europe, including two world-class
plastic recycling facilities. Customers include some of the world's
largest brands in the dine-in and to-go restaurant, grocery,
retail, sanitation and janitorial, construction, food processing
and related industries. With Apollo’s global resources and
significant experience in the packaging sector, Novolex expects to
strengthen its leadership position by expanding its blue-chip
customer relationships through a shared commitment to
sustainability and product innovation.
Rob Seminara, Partner at Apollo, said, "We are pleased to invest
in Novolex, a high-quality, resilient business with a loyal,
long-term customer base. The Company has a strong management team
and is poised to capitalize on growth across food delivery and
e-commerce as well as increasing demand for environmentally
responsible and compostable products. Importantly, Novolex shares
our commitment to sustainability. We look forward to working
alongside Stan Bikulege and the rest of the talented management
team to create significant value for customers and our
investors."
Stan Bikulege, Novolex Chairman and CEO, said, "This transaction
is a milestone in the Novolex growth story and for the 10,000
Novolex employee families who contribute to our Company every day.
Apollo offers tremendous resources and expertise and brings
significant experience in the packaging industry to the table that
will enable us to continue to thrive on the next leg of our
journey.”
"I want to offer my thanks to the tremendous team at Carlyle
that has supported our business for the past five plus years. With
their support, we have invested in the business, launched dozens of
new products and expanded relationships with customers. We also
acquired six businesses on two continents that have enabled us to
support our customers' growth and sustainability goals while nearly
doubling the number of jobs we have been able to provide."
Wes Bieligk, Managing Director at Carlyle, said, "We are proud
of our partnership with Stan and team, who have nearly doubled the
size of the Company since we first invested in Novolex in 2016.
We're excited to see the Company enter its new phase with Apollo
and look forward to our continued partnership as a minority
investor."
Deutsche Bank (NYSE: DB), Evercore (NYSE: EVR), and Barclays
(NYSE: BCS) acted as financial advisors and Paul, Weiss, Rifkind,
Wharton & Garrison LLP served as counsel to Apollo.
Credit Suisse Group (NYSE: CS) and Goldman Sachs & Co. LLC.
(NYSE: GS) acted as financial advisors and Latham & Watkins LLP
and Nelson Mullins Riley & Scarborough LLP served as counsel to
Novolex and Carlyle.
The transaction is expected to close during the second quarter
of 2022, subject to regulatory approvals.
About Apollo
Apollo is a global, high-growth alternative asset manager. In
our asset management business, we seek to provide our clients
excess return at every point along the risk-reward spectrum from
investment grade to private equity with a focus on three business
strategies: yield, hybrid, and equity. For more than three decades,
our investing expertise across our fully integrated platform has
served the financial return needs of our clients and provided
businesses with innovative capital solutions for growth. Through
Athene, our retirement services business, we specialize in helping
clients achieve financial security by providing a suite of
retirement savings products and acting as a solutions provider to
institutions. Our patient, creative, and knowledgeable approach to
investing aligns our clients, businesses we invest in, our
employees, and the communities we impact, to expand opportunity and
achieve positive outcomes. As of December 31, 2021, Apollo had
approximately $498 billion of assets under management. To learn
more, please visit www.apollo.com.
About Carlyle
Carlyle (NASDAQ: CG) is a global investment firm with deep
industry expertise that deploys private capital across three
business segments: Global Private Equity, Global Credit and Global
Investment Solutions. With $301 billion of assets under management
as of December 31, 2021, Carlyle’s purpose is to invest wisely and
create value on behalf of its investors, portfolio companies and
the communities in which we live and invest. Carlyle employs nearly
1,850 people in 26 offices across five continents. Further
information is available at www.carlyle.com. Follow Carlyle on
Twitter @OneCarlyle.
About Novolex
Novolex develops and manufactures diverse packaging products for
multiple industries in the foodservice, delivery and carryout, food
processor and industrial markets that touch nearly every aspect of
daily life. The Novolex family of brands provides customers with
innovative food and delivery packaging and performance solutions
products for their business needs today while investing in research
and development to engineer more sustainable choices for the
future. With more than 10,000 employee families, Novolex operates
57 manufacturing facilities in North America and Europe, including
two world-class plastic film recycling centers. To learn more about
Novolex visit www.novolex.com.
Media ContactsNovolexPhil
Rozenski1-800-845-6051media@novolex.com
ApolloJoanna RoseGlobal Head of Corporate
CommunicationsApollo Global Management, Inc.(212)
822-0491Communications@apollo.com
CarlyleBrittany
Berliner212.813.4839Brittany.berliner@carlyle.com
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