Sonoco Completes Acquisition of Eviosys
Rhea-AI Summary
Sonoco Products Company (NYSE: SON) has completed its acquisition of Eviosys, Europe's leading food cans, ends and closures manufacturer, from KPS Capital Partners. The acquisition, which was initially announced on June 24, 2024, aligns with Sonoco's portfolio transformation strategy aimed at simplifying and repositioning the company for long-term growth and value creation.
Following the integration process, Eviosys will be incorporated into Sonoco's Consumer Packaging segment and will transition to the Sonoco brand in the coming months.
Positive
- Strategic acquisition of Europe's leading food cans manufacturer strengthens market position
- Expansion of consumer packaging segment through integration of Eviosys
- Portfolio transformation advancing towards long-term growth objectives
Negative
- None.
Insights
This strategic acquisition significantly strengthens Sonoco's market position in metal packaging and expands its European footprint. The deal represents a major portfolio transformation, particularly bolstering the Consumer Packaging segment. Metal packaging is a stable, recession-resistant business with predictable cash flows, making this acquisition particularly valuable in the current economic climate.
Eviosys' strong presence in Europe's food can market provides Sonoco with immediate scale and manufacturing capabilities in a key region. The integration should yield operational synergies and enhance Sonoco's ability to serve global customers. While specific financial terms weren't disclosed, this acquisition will likely be accretive to earnings given Eviosys' market leadership position and the complementary nature of their operations.
The metal packaging industry demonstrates robust fundamentals, driven by increasing demand for sustainable packaging solutions and food security concerns. This acquisition positions Sonoco to capitalize on these trends while diversifying its geographic revenue mix. The European metal packaging market has high barriers to entry and stable customer relationships, typically through long-term contracts.
The timing is strategic as consumers increasingly prefer metal packaging for its recyclability and long shelf-life properties. The integration of Eviosys strengthens Sonoco's competitive position against other global packaging leaders and provides cross-selling opportunities across their combined customer base. This move could potentially lead to market share gains and improved pricing power in the consolidated European market.
Creates a Global Leader in Metal Food and Aerosol Can Manufacturing
Advances Sonoco’s Portfolio Transformation Strategy
HARTSVILLE, S.C., Dec. 04, 2024 (GLOBE NEWSWIRE) -- Sonoco Products Company (“Sonoco” or the “Company”) (NYSE: SON), a global leader in high-value sustainable packaging, today announced the close of its acquisition of Eviosys, Europe’s leading food cans, ends and closures manufacturer, from KPS Capital Partners, LP (“KPS”).
The transaction advances Sonoco’s portfolio transformation strategy to simplify and realign its portfolio and position the Company for long-term growth and value creation. Sonoco announced its intent to acquire Eviosys on June 24, 2024. Following the integration process, Eviosys will transition to the Sonoco brand over the coming months and will operate under Sonoco’s Consumer Packaging segment.
Forward-Looking Statements
Certain statements made in this communication with respect to the transaction are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “assume”, “believe”, “committed”, “continue”, “could”, “estimate”, “expect”, “focused”, “future”, “guidance”, “likely”, “may”, “ongoing”, “outlook”, “potential”, “seek”, “strategy”, “will”, or the negative thereof, and similar expressions identify forward-looking statements.
Forward-looking statements contained in this communication are made based on current expectations, estimates and projections about the Company’s industry, management’s beliefs and certain assumptions made by management. Such information includes, without limitation, discussions as to guidance and other estimates, perceived opportunities, expectations, beliefs, plans, strategies, goals and objectives concerning the Company’s future financial and operating performance. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict.
Therefore, actual results may differ materially from those expressed or forecasted in such forward-looking statements. Risks and uncertainties include, among other things: risks related to the transaction, including the ability to retain key employees and successfully integrate Eviosys; the Company’s ability to realize estimated cost savings, synergies or other anticipated benefits of the transaction, or that such benefits may take longer to realize than expected; diversion of management’s attention; the potential impact of the consummation of the transaction on relationships with clients and other third parties; the operation of new manufacturing capabilities; the availability, transportation and pricing of raw materials, energy and transportation, including the impact of potential changes in tariffs or sanctions and escalating trade wars, and the impact of war, general regional instability and other geopolitical tensions (such as the ongoing conflict between Russia and Ukraine as well as the economic sanctions related thereto, and the ongoing conflict in Israel and Gaza), and the Company’s ability to pass raw material, energy and transportation price increases and surcharges through to customers or otherwise manage these commodity pricing risks; the costs of labor; the effects of inflation, fluctuations in consumer demand, volume softness, and other macroeconomic factors on the Company and the industries in which it operates and that it serves; the Company’s ability to meet its environmental and sustainability goals, including with respect to greenhouse gas emissions; risks related to obtaining regulatory clearance under the antitrust laws in the UK with respect to the transaction; and to meet other social and governance goals, including challenges in implementation thereof; and the other risks, uncertainties and assumptions discussed in the Company’s filings with the Securities and Exchange Commission, including its most recent reports on Forms 10-K and 10-Q, particularly under the heading “Risk Factors”. Except as required by applicable law, the Company undertakes no obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events discussed herein might not occur.
About Sonoco
With net sales of approximately
About Eviosys
Eviosys is a leading global supplier of metal packaging, producing food cans and ends, aerosol cans, metal closures and promotional packaging to preserve the products of hundreds of consumer brands. Eviosys has the largest manufacturing footprint in Europe, the Middle East and Africa (EMEA) in the industry with 6,300 employees in 44 manufacturing facilities across 17 countries in the region. In 2023, it generated
Contact Information
Investors
Lisa Weeks
Vice President of Investor Relations & Communications
lisa.weeks@sonoco.com
843-383-7524
Media
FGS Global
Leah Polito / Jamie Baird
Sonoco@fgsglobal.com
FAQ
When did Sonoco (SON) complete the acquisition of Eviosys?
What segment will Eviosys operate under within Sonoco (SON)?
When did Sonoco (SON) initially announce its intention to acquire Eviosys?
Who was the previous owner of Eviosys before Sonoco's (SON) acquisition?
