Sonoco Completes $150 Million Acquisition of Leading Packaging Products Business

SEATTLE (Scrap Monster): Hartsville-headquartered global packaging firm Sonoco has announced that it has completed acquisition of Plant City, Florida-based Highland Packaging Solutions. The definitive agreement towards the acquisition was signed in March this year. The company had declared Q2 2018 as the tentative date of closing of the transaction. Highland Packaging Solutions is a leading manufacturer of thermoformed packaging products.

According to company sources, Sonoco had paid approximately $150 million in cash to acquire the privately held company. The acquired business will become part of Sonoco’s global plastics operations, Sonoco noted. The financial results will be reported along with Sonoco’s consumer packaging segment. Incidentally, Highland had reported net revenues of around $90 million during 2017. Apart from the main production facility at Tampa, Highland also owns five warehouses. It employs around 425 people.

ALSO READ: Sonoco Reports Q4 and Full Year 2017 Results

The acquisition further expands Sonoco’s thermoforming capabilities and capacity. Also, it is expected to add in-house capabilities in labeling for new substrates. Furthermore, it will lead to expansion of packaging portfolio in fresh produce and diary. The presence of Highland’s dedicated manufacturing facility in the important Florida produce market will provide an entry for Sonoco into egg packaging.

Rob Tiede, President and CEO, Sonoco noted that the company is extremely pleased to have Highland joining its product portfolio. The addition will further expand its thermoforming packaging capabilities, after the recent acquisitions of Peninsula Packaging and Clear Lam during the previous year. These acquisitions have helped the company to turn out to be a leader in packaging solutions, Tiede said. The combination of Highland’s product lines and Sonoco’s packaging capabilities will further enhance the company’s capability to offer innovative and diverse consumer packaging solutions to the ever-growing industry, Tiede added.