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Packaging firm Novolex to be put up for auction

US paper and plastic flexible packaging firm Novolex, whose value has been pegged at $1.75bn inclusive of debt, will be put up for sale by private equity company Wind Point Partners.

Deutsche Bank and Macquarie Group have geared up for holding auction for Novolex, people familiar with the development told Reuters.

However, neither of the firms party to such confidential sale process have issued any statement or responded to queries so far.

With 31 units in the US, three in Canada and one in Mexico, Novolex flaunts brands, such as, Bagcraft Packaging, Pac Paper, De Luxe Packaging, International Converter and General Packaging Products under its product line. It has a staff headcount of 5,000, the publication adds.

In 2012, Novolex, erstwhile known as Hilex Poly, was purchased by Wind Point Partners from TPG Growth in exchange of an amount yet to be disclosed.

Last year, Novolex purchased Packaging Dynamics from Kohlberg & Co by shelling out $570m to expand its range of paper and plastic flexible packaging products to cater to various industries.

The acquisition in 2014 marked the third acquisition by Novolex, following its move to acquire portions of the North American Flexible Packaging division of Amsterdam-based Clondalkin Group in 2013 and Duro Bag Manufacturing Company.