Novolex makes products in paper, plastic and sustainable materials for the food, retail, health and industrial markets. It is owned by investment firm The Carlyle Group.
Vegware is headquartered in Scotland, and was founded in 2006 by managing director Joe Frankel.
“Vegware has been committed to quality, performance and design for over 15 years,” he said.
“Joining Novolex, with its exceptional resources and large footprint, will allow Vegware to expand distribution of quality compostable products and waste management initiatives to our customers across the globe.”
The firm had been fast-growing prior to the Covid-19 pandemic, which impacted sales in food services and the business and industry catering sector.
Pre-pandemic, UK sales were up 28% while export sales jumped by 58%. The firm employs around 70 staff.
The pandemic-impacted results for the year ending 31 January saw sales fall 14% to £36.4m, but the business actually improved its operating profits to £2.28m from £1.9m the prior year.
Frankel said that despite the shock caused by the pandemic, the business had proved resilient, with second-half sales bouncing back.
New products include paper-based lids for hot drinks and soups.
Stan Bikulege, chairman and CEO of Novolex, commented: “Vegware is an excellent company and its addition to Novolex is an exciting step to growing our global compostable products footprint.
“We are pleased to welcome the Vegware team to the Novolex family and maintain our momentum of supporting brands that meet society’s expectations for sustainable products.”
The Vegware brand will be retained, and will become part of Novolex’s Eco-Products portfolio.
Novolex has 10,000 employees and operates 57 manufacturing facilities in North America and Europe. Its UK business is involved with plastic thermoforming and extrusion, and has sales of nearly £70m.
The terms of the deal were not disclosed.
Vegware had been backed by Bradenham Partners and was the highest-ranked industry business in the Sunday Times/Fast Track International Track 200 published earlier this year. The firm has also been the recipient of a Queen's Award for Enterprise.
