Logout
Click here for Pulp & Paper Radio International
The Paperitalo Library
Free Downloads
Search
My Profile
Login
Sonoco Acquires Tegrant
Print
Hartsville, South Carolina, USA, 08 November 2012 -- (BUSINESS WIRE) -- Sonoco (NYSE:SON - News), one of the largest diversified global packaging companies, today announced that it has completed its acquisition of Tegrant Corporation, a leading provider of highly engineered protective, temperature-assured and retail security packaging solutions, from Metalmark Capital for USD 550 million.

According to Harris E. DeLoach, Jr., Sonoco chairman and chief executive officer, the acquisition of Tegrant has created a North American leader in multimaterial protective packaging with more than 40 years of industry experience. Sonoco’s Protective Packaging businesses operate nearly 40 manufacturing, design, and testing facilities in the United States, Mexico, Puerto Rico, and Ireland, with estimated annualized net sales of USD 540 million.

“We are pleased to welcome Tegrant’s businesses and its more than 2000 employees to the Sonoco family,” said DeLoach. “Sonoco’s new Protective Packaging segment combines our strong application engineering capabilities and problem-solving expertise to help deliver custom-engineered protective packaging solutions to a variety of growing consumer and industrial markets. Sonoco Protective Packaging now has leading positions in fast growing markets, including medical devices, pharmaceuticals, automotive components, and health and beauty products, along with expanded access to a variety of industrial markets.”

Sonoco’s new Protective Packaging segment includes four businesses. Protexic Brands, the largest business, is North America’s premier manufacturer of molded expanded foam. It serves a number of industries, including high technology, consumer electronics, automotive, appliances, and medical devices. ThermoSafe Brands is the world’s leading provider of temperature-assured solutions, primarily used in packaging temperature-sensitive pharmaceuticals and food. Alloyd Brands is a leading manufacturer and designer of high-visibility packaging, printed products, and blister packaging machines for retail and medical markets. Sonoco’s existing protective packaging business is a leading provider of custom-designed paper-based packaging solutions for household appliances, heating and air conditioning units, home and office furniture, lawn and garden equipment, and a variety of other consumer products.

Financing Update

In preparation for completing the Tegrant acquisition, Sonoco previously issued USD 500 million of new senior unsecured notes consisting of USD 250 million of 4.375% notes due 2021 and a reopening of its 5.75% notes due 2040 for USD 250 million.

Additionally, the company recently entered into a USD 150 million three-year term loan agreement, using a substantial portion of the proceeds to reduce outstanding commercial paper.

Merrill Lynch, Pierce, Fenner & Smith Incorporated; J.P. Morgan Securities, LLC; and Wells Fargo Securities, LLC acted as joint book-running managers for the Notes offering. The lenders under the term loan include Bank of America, N.A.; J.P. Morgan Chase Bank, N.A.; and Wells Fargo Bank, N.A. Bank of America also is the administrative agent, and Merrill Lynch, Pierce, Fenner & Smith Incorporated; J.P. Morgan Securities LLC; and Wells Fargo Securities LLC are joint lead arrangers.

Founded in 1899, Sonoco is a global provider of a variety of consumer packaging, industrial products, protective packaging, and packaging supply chain services. With annualized net sales of approximately USD 5 billion, the company has more than 19,000 employees working in 340 operations in 34 countries, delivering products to some 85 nations. Sonoco is a proud member of the 2011/2012 Dow Jones Sustainability World Index. For more information on the company, visit www.sonoco.com.

 

Related Articles:


Powered by Bondware
News Publishing Software

The browser you are using is outdated!

You may not be getting all you can out of your browsing experience
and may be open to security risks!

Consider upgrading to the latest version of your browser or choose on below: