TOPPAN Holdings has reached an agreement to acquire Sonoco Products Company’s Thermoformed & Flexible Packaging (TFP) business in the US for $1.8bn on a cash-free and debt-free basis.
The deal is expected to enhance TOPPAN’s global packaging operations by integrating TFP’s extensive customer base and solution development capabilities.
Sonoco’s TFP business serves a diverse range of sectors such as the food, retail, and medical segments.
TFP’s revenue stood at approximately $1.3bn in 2023 on a pro forma standalone basis.
The acquisition is seen as complementary, merging TFP’s sales network and customer base in North and South America with TOPPAN Group’s technical expertise and manufacturing capabilities.
TOPPAN Holdings representative director, president, and CEO Hideharu Maro said: “We are extremely pleased to have the opportunity to bring Sonoco’s TFP business to the TOPPAN Group.
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“In order to accelerate our strategy to become a global leader in sustainable packaging solutions, we will employ the complementary strengths of both parties to drive growth, solve customers’ needs and create significant value for our shareholders.
“This is an essential milestone in the TOPPAN Group’s global strategy to scale the sustainable packaging business.”
Sonoco has indicated that this transaction marks the conclusion of its previously announced strategic review of the TFP business.
Sonoco president and CEO Howard Coker said: “The decision to sell our TFP business accelerates our portfolio simplification strategy, streamlines our organisational structure, and enables more focused capital investments in our remaining industrial paper and consumer packaging businesses.
“TFP is a great business with leadership positions in its served markets. We greatly value TFP’s tenured history as part of the Sonoco family, and I am personally proud of their longstanding commitment to serve our customers with both innovative and high-quality packaging products.
“We will work closely with TOPPAN to ensure a successful transition for our employees, customers, and suppliers and wish the entire team all the best in the future.”
The deal is subject to customary closing conditions, including regulatory approvals, and is set to be finalised in the first half (H1) of 2025.
Earlier this month, Sonoco itself acquired Eviosys, a European metal packaging company.
