Carlyle Said to Consider $6 Billion Sale or IPO for Novolex

(Bloomberg) -- Carlyle Group Inc. is considering options for Novolex Holdings that include selling the packaging company or taking it public, according to people familiar with the matter.

The private equity firm has been interviewing banks for a strategic review of the Hartsville, South Carolina-based company in the first half of 2022, said the people, who asked not to be identified because the information is private. 

Novolex could be valued at about $6 billion should Carlyle choose to sell the company or opt for an initial public offering, although no final decision has been made and the firm could elect to keep the business, the people said.

A representative for Carlyle declined to comment, while a representative for Novolex didn’t immediately respond to a request seeking comment.

Carlyle agreed to buy Novolex for an undisclosed sum from peers Wind Point Partners and TPG Growth in November 2016. The firm has backed the management team, led by Chairman and Chief Executive Officer Stanley Bikulege, with acquisitions including Waddington Group in 2018 and Flexo Converters USA Inc. two months ago, according to statements by the company.

Novolex operates more than 60 plants worldwide with brands including Hilex Poly, Duro Bag and Burrows Packaging, according to the company’s website. 

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