Us-based one of the most diversified global packaging companies, has announced it sold its domestic display and packaging business to mill-to-market company Hood Container. The transaction is valued at USD 80 million in cash.
Based in Winston-Salem, North Carolina, the display and packaging business specialises in point-of-purchase display design, manufacturing and fulfilment. Sonoco’s U.S. Display and Packaging business produced net sales of approximately USD 135 million in 2020.
The company also offers contract packaging services for consumer products customers with more than 250 brands. It currently operates eight manufacturing and fulfillment facilities along with four sales and design centers and has approximately 450 employees.
«Our US Display and Packaging business» according to Howard Coker, Sonoco president and CEO, «has been an industry pioneer, with a legacy of providing innovative solutions for complex supply chain challenges. But Sonoco is focused on growing our core Consumer and Industrial packaging businesses around the world. By divesting this business, we expect to apply proceeds to further invest in ourselves while returning value to our shareholders.»
Rothschild and Co served as financial adviser for Sonoco during the transaction while Haynsworth Sinkler Boyd acted as legal adviser. Based in Atlanta, GA, Hood Container is a family owned, leading integrated paperboard and specialty paper manufacturer with operations in containerboard, kraft paper, corrugated boxes, high-graphic displays and contract packaging, corrugated, folded box and displays.
Last December, Sonoco divested its Europe contract packaging business to a subsidiary of Wisconsin-based contract packaging and contract manufacturing firm Prairie Industries Holdings for USD 120 million in cash.
That month, the company also joined Holy Grail 2.0, a digital watermarks initiative to deliver on sustainability goals.
In August, Sonoco acquired France-based sustainable packaging company Can Packaging for EUR 41.7 million.
The deal was intended to expand Sonoco’s sustainable paperboard packaging offerings to various consumer food brands serving the European market.