(Reuters) -Packaging firm Novolex will buy rival Pactiv Evergreen in a $6.7 billion deal, as the Apollo Global Management-owned firm looks to bolster its business of food and beverage packaging in a cautious economic environment.

Novolex will offer $18 per share to take Pactiv private in an all-cash transaction, including debt, the companies said on Monday.

The deal represents a 32.4% premium to Pactiv's closing price on Dec. 2, a day before Bloomberg News first reported that Novolex was considering purchasing the company.

Shares of Pactiv, which sells its products to restaurants, retailers, food and beverage producers, packers and processors, jumped about 19%.

Packaging firms have been scouting for deals as easing demand following a boom fueled by e-commerce during the pandemic sparked consolidation in the sector.

Last month, Switzerland-based Amcor agreed to buy U.S. peer Berry Global for $8.4 billion. International Paper said in April it would buy British paper and packaging firm DS Smith.

Lower sales volumes in the food and beverage merchandising segment even led to a decline in Pactiv's third-quarter revenue last month. The company also reported a loss during the period, hurt by a rise in raw material costs.

The Novolex-Pactiv deal, supported by funds managed by affiliates of Apollo and Canada Pension Plan Investment Board, would allow the merged company to deliver 250 brands, along with expanded distribution, across the U.S., Canada and Mexico.

The combined firm will be led by Novolex Chairman and CEO Stan Bikulege.

Barclays Bank, Morgan Stanley and RBC Capital Markets are the financial advisers to Novolex, while Goldman Sachs and Lazard Freres are advisers to Pactiv.

(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Shilpi Majumdar)