Sonoco Announces Complete Acquisition of Conitex Sonoco JV

SEATTLE (Scrap Monster): The Hartsville-headquartered global packaging firm Sonoco has announced that it has signed a definitive agreement to acquire the remaining stake in the joint venture of Conitex Sonoco, of which it currently owns 30% interest. The acquisition deal is valued at approximately $133 million in cash. The deal is subject to international regulatory approval and is expected to close during Q3 this year.

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Rob Tiede, president and CEO, Sonoco, noted that the company has had a successful relationship with Conitex Sonoco over the past 20 years, since its formation in 1998. The company foresees tremendous growth opportunity to its existing paper-based tube and core business, upon completion of the acquisition. Further it will result in notable jump in Sonoco’s manufacturing presence in fast growing emerging markets in the Asian region, which in turn could double the regional sales, Tiede said. The company looks forward to continue offering innovative packaging solutions in paperboard, textile carriers and other value-added products, he added. Tiede also welcomed Conitex Sonoco’s 1,250 employees to its fold.

The acquisition of Conitex Sonoco is expected to contribute to company’s earnings in 2018. Upon completion of the transaction, financial results of Conitex Sonoco will be reported along with Sonoco’s Paper/Industrial Converted Products segment. Conitex Sonoco’s executive leadership team will remain with Sonoco. Also, the acquisition will not result in any change to existing customer relationships.

The Conitex Sonoco joint venture was formed between Spanish Texpack, Inc. and Sonoco’s former North America textile cone business. Currently, the JV has 13 manufacturing locations spread across 10 different countries. It had reported total annual sales of $245 million during the previous year.