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Paper Recycling October 14, 2020 09:10:41 PM

Sonoco Announces Divestiture of Europe Contract Packaging Business

Paul Ploumis
ScrapMonster Author
The transaction is subject to customary closing conditions and is expected to be completed in Q4 this year.

Sonoco Announces Divestiture of Europe Contract Packaging Business

SEATTLE (Scrap Monster): Global packaging leader Sonoco announced its decision to sell its Europe contract packaging business for a sum of $120 million. The company has signed an agreement to this effect with Wisconsin-based contract packaging and contract manufacturing firm, Prairie Industries Holdings. The transaction is subject to customary closing conditions and is expected to be completed in Q4 this year.

According to the company, the Europe contract packaging business had reported net sales of approximately $300 million during the previous year. The business, part of Sonoco’s Display and Packaging segment, comprises of six contract packaging facilities and a warehouse facility in Poland. It employs nearly 2,600 employees.

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Howard CokerSonoco President and Chief Executive Officer stated that the divestiture is part of the company’s efforts to streamline its operating structure so as to focus on its core businesses. The proceeds from the transaction will be used to reduce short-term debt and further improve its strong liquidity position.

Scott Lamb, Chief Executive Officer of Prairie Industries Holdings, welcomed the team to the organization and said that the outstanding quality service and the portfolio of world-class facilities will position the combined business as a global contract packaging leader.

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