Sonoco Products Sells TFP Business for $1.8B

By Bobby Samwell • Thursday, December 19 15:21 • Permanent Link

Sonoco Products Company has announced the completion of a strategic review, culminating in an agreement to sell its Thermoformed & Flexibles Packaging (TFP) business to Toppan Holdings Inc. for approximately $1.8 billion on a cash-free and debt-free basis. The transaction is expected to close in the first half of 2025.

Sonoco's President and CEO, Howard Coker, stated that the decision to sell the TFP business accelerates the company's portfolio simplification strategy and enables more focused capital investments in its remaining industrial paper and consumer packaging businesses.

Goldman Sachs & Co. LLC and RBC Capital Markets, LLC are acting as financial advisors to Sonoco, while Freshfields LLP is serving as Sonoco's legal advisor. Houlihan Lokey and Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. are the lead and additional financial advisors to Toppan, respectively, with Morrison & Foerster LLP as Toppan's legal advisor.

In 2023, Sonoco reported net sales of approximately $6.8 billion, with a workforce of approximately 22,000 employees across more than 300 global operations. The company's corporate purpose revolves around creating sustainable products and a better world for its customers, employees, and communities.

This strategic move reflects Sonoco's commitment to refining its business focus and optimizing its operational structure for sustained growth and value creation. The market has reacted to these announcements by moving the company's shares 2.5% to a price of $50.3. If you want to know more, read the company's complete 8-K report here.

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