Sonoco Completes Acquisition of Conitex Sonoco Joint Venture

SEATTLE (Scrap Monster): The Hartsville-headquartered global packaging firm Sonoco announced that it has completed acquisition of the remaining 70% interest in the joint venture of Conitex Sonoco. Sonoco, which previously owned 30% interest, had signed a definitive agreement towards purchase of the remaining interest in May this year. Incidentally, Conitex Sonoco is a leading manufacturer of paper-based cones and tubes that are mainly used in textile industry.

According to Rob Tiede, president and CEO, Sonoco, the combination is likely to further the growth opportunities of Sonoco’s existing paper-based tube and core business across the world, especially in faster-growing emerging markets in Asia. The acquisition will help the company to expand its manufacturing presence in the region, by more than doubling its regional sales, Tiede noted. Further, he reminded that Sonoco has had successful relationship with Conitex Sonoco for over two decades, since its formation in 1998.

The financial results of Conitex Sonoco will be reported along with Sonoco’s Paper/Industrial Converted Products segment. The Spanish composite can operations will be reported along with Sonoco’s Consumer Packaging segment. Conitex Sonoco’s global leadership team, including CEO Michel Schmidlin will remain with Sonoco. The merger is unlikely to result in major changes to customer relationships either.