Wind Point's NOVOLEX to Acquire Packaging Dynamics
November 12, 2014
NOVOLEX and Packaging Dynamics have jointly announced a merger agreement that will create a company with $1.9 billion in revenue, offering a range of paper and plastic flexible packaging products across a variety of end markets. Expected to close in 4Q, the rumored $600 million+ transaction will be financed with a fully underwritten debt facility jointly arranged by Deutsche Bank, GE Capital, Macquarie Capital and BMO Capital Markets; that same facility will retire Packaging Dynamics' existing senior secured notes. Wind Point Partners has backed NOVOLEX (formerly known as Hilex Poly) since 2012, while Kohlberg & Company's Thilmany took Packaging Dynamics private in 2006, a deal valuing the company at $268 million. Both PE firms have sponsored several add-ons during their holding periods, with this year seeing those of Pac Paper and Duro Bag Manufacturing already.