Sonoco has acquired Associated Packaging Technologies for an all-cash purchase price of approximately $120m.
Sonoco, one of the largest diversified global packaging companies, has completed the acquisition of Associated Packaging Technologies (APT), a North American largest manufacturer and supplier of crystallized polyethylene terepthalate (CPET) containers to the frozen food industry.
The all-cash purchase price, including the cost of paying off various obligations of APT, was approximately $120m, subject to certain adjustments. The acquisition is expected to be modestly accretive in 2010 and is expected to generate annualized sales of approximately $150m. The transaction was closed on June 29, 2010. APT was previously majority owned by investment funds controlled by Castle Harlan.
APT operates four CPET thermoforming manufacturing facilities in Cambridge, Ontario, Canada; Chillicothe, Missouri; Waynesville, North Carolina; and Carrickmacross, Ireland. In addition to being able to manufacture approximately 3bn CPET containers annually, APT has monolayer and multilayer barrier polypropylene container capabilities. The company also is a pioneer in the development of recycled PET (RePET) frozen food trays.
Harris DeLoach Jr., chairman, president and chief executive officer of Sonoco, said: “With this acquisition, Sonoco has significantly expanded its existing thermoforming plastic container capabilities into the growing global frozen, chilled and ready-to-eat food markets.”
“While APT is today the leading global supplier of CPET containers, we believe its proprietary material formulations and rotary thermoforming technology provide a strong platform for significant product development and growth. In addition, this acquisition will help accelerate Sonoco’s current development of multilayer barrier polypropylene food containers,” he added.