Sonoco Concluded Sale of Retail Display Business Unit

SEATTLE (Scrap Monster): Hartsville, South Carolina-based diversified global packaging major Sonoco announced that it has closed on the sale of its Display and Packaging business unit in the U.S. to Atlanta-based Hood Container Corp. The sale transaction was valued at $80 million in cash.

The U.S. Display and Packaging business had produced net sales of approximately $135 million during the previous year. The business segment operates a total of eight manufacturing and fulfilment facilities, in addition to four sales and design centres. The segment employs nearly 450 employees.

Sonoco had made significant investments on the Packaging sector during recent times, including the $83 million investment at its Hartsville mill and the $49 million purchase of France-based Can Packaging.

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Howard Coker, President and CEO, Sonoco noted that the U.S. Display and Packaging business has been an industry pioneer, offering innovative solutions for complex supply chain challenges. The divestment is part of the company’s strategy to focus on its core Consumer and Industrial packaging businesses around the world. The proceeds from the sale will be reinvested, so as to ensure better value to its shareholders, he added.

Rothschild & Co served as the financial advisor for the company on the transaction. Also, the legal advisor was Haynsworth Sinkler Boyd.