Sonoco To Acquire Clear Lam Packaging, Inc. for $170 Million

SEATTLE (Scrap Monster): Hartsville-headquartered global packaging firm Sonoco has signed a definitive agreement to acquire 100% stake in Clear Lam Packaging, Inc. The company will pay approximately $170 million in cash towards acquisition of the family-owned business which manufactures flexible and forming plastic packaging films. The deal is expected to close by July 2017, subject to regulatory approvals.

The acquisition is expected to expand Sonoco’s retail packaging footprint into packaging of wide range of fresh, perishable foods. It will broaden the range of integrated packaging solutions offered to its customers. The purchase of Clear Lam is expected to increase the scale and scope of Sonoco’s flexible packaging and thermoformed plastic product solutions.

Jack Sanders, President and CEO, Sonoco stated that Clear Lam complements the recent acquisition of Peninsula Packaging Company, a leading manufacturer of thermoformed packaging, for approximately $230 million. The acquisition will empower the company to develop and produce flexible, film-packaging solutions to package fresh and prepared food products. Meantime, Rob Tiede, Executive Vice President and COO of the company noted that addition of Clear Lam is expected to provide immense technology advantages, which in turn will drive tremendous market growth potentials. Sonoco is looking forward to opportunities to leverage Clear Lam’s expertise in modified atmosphere packaging, Tiede added.

According to the press release issued by Clear Lam Packaging, Inc., the Board of Directors decided to sell the company to Sonoco on the strong belief that the combined entity would be able to achieve even greater success. The similarity in cultures of both the companies also contributed to the merger decision. The combined entity will strive hard to deliver new products and innovative solutions to its customers as before. Jim Sanfilippo, President & CEO noted that Clear Lam is excited to become part of the Sonoco family. Also, he confirmed that there would not be any major change to the organizational structure, on account of the merger.

Founded in 1899, Sonoco is a global provider of consumer packaging, industrial products, protective solutions and display and packaging services. Headquartered in Hartsville, S.C., it has nearly 330 operations spread across 34 nations. Sonoco develops and deliver innovative packaging solutions that enhance and optimize their business and brands.

Clear Lam is a leading developer, manufacturer and converter of innovative flexible and forming film packaging materials used with fresh and processed foods, personal health care products, electronics, household products and industrial products. It serves markets including confectionary, condiments, fresh and prepared foods, nuts and snacks. The company has manufacturing facilities in Elk Grove Village, Ill., and Nanjing, China, and has approximately 400 associates.