Sonoco has reached an agreement to acquire packaging manufacturer Ball Metalpack for $1.35 billion in cash.
Formed in 2018 as a joint venture of Platinum Equity and Ball Corporation, Ball Metalpack produces recyclable tinplate food and aerosol containers, as well as closures and packaging components, from its eight facilities in the US.
Sonoco’s president and CEO, Howard Coker, said: “This acquisition fits our strategy of investing in Sonoco’s core businesses, as it complements our largest consumer packaging franchise – our iconic global paper cans and closures business. In addition, it further expands our already established sustainable packaging portfolio with metal packaging, which is the most recycled packaging substrate in the US.”
He continued: “We’ve had a long relationship with the Ball Metalpack team, including previously owning and operating two of their manufacturing facilities in Canton. With a comprehensive and innovative product portfolio that has received significant recent investments in new technology and capacity, we believe the addition of Ball Metalpack will further strengthen our stable cash flow generation while driving solid earnings accretion.”
Ball Metalpack is forecasted to generate around $850 million in revenue this year. Additionally, the deal is expected to provide Sonoco with a tax benefit of approximately $180 million.
Ball Metalpack’s CEO, Jim Peterson, will continue to lead the company under Sonoco’s consumer packaging division.
The transaction is expected to close in early 2022, subject to customary closing conditions and regulatory reviews.