Sonoco Products (SON: NYE) announced a significant move to bolster its presence in the global food packaging market. The company has entered into an agreement to acquire Eviosys, a prominent European producer of food cans for a staggering $3.9 billion.
Eviosys Acquisition Expands Sonoco’s Reach in Europe:
This strategic acquisition allows Sonoco Products to significantly expand its footprint in the European food can market. Eviosys’ strong reputation and established customer base in Europe will complement Sonoco’s existing operations, creating a leading metal food can and aerosol packaging platform on a global scale.
Sonoco to Divest ThermoSafe Business:
In a separate announcement, Sonoco Products revealed plans to divest its ThermoSafe business unit. ThermoSafe specializes in temperature-controlled packaging solutions. This move suggests a strategic focus on Sonoco’s core business in consumer packaging.
Sonoco Poised for Growth with Strategic Acquisitions:
The acquisition of Eviosys, coupled with the planned divestment of ThermoSafe, indicates a clear direction for Sonoco Products. By expanding its presence in the high-growth European food packaging market and streamlining its portfolio, Sonoco is well-positioned for future success. The company anticipates the acquisition to generate $100 million in synergies and significantly increase its bottom line by 2025.
