Apollo’s Novolex to Buy Packaging Rival Pactiv Evergreen (2)

Apollo Global Management Inc.-owned packaging company Novolex said it will purchase rival Pactiv Evergreen Inc. for $18 a share, or $6.7 billion including debt.

The deal disclosed Monday in a statement confirms an earlier Bloomberg report that Novolex was exploring a potential takeover.

The purchase price is 23% above Pactiv’s Friday closing price of $14.68. Pactiv’s shares gained 19% to $17.53 at 9:40 a.m. in early trading in New York on Monday.

Companies in the fragmented packaging sector are looking for scale to boost profitability. Recent moves include Amcor Plc’s agreement to acquire Berry Global Group Inc. for about ...