TEQ produces recyclable, molded-pulp-fiber packaging and thermoformed plastic packaging for multiple consumer products mainly in Europe and has about 500 associates
TEQ produces recyclable, molded-pulp-fiber packaging and thermoformed plastic packagin. Credit: Pixabay/Gerd Altmann.
US-based diversified packaging firm Sonoco has completed the acquisition of Thermoform Engineered Quality and Plastique Holdings (together TEQ) from ESCO Technologies for $187m in cash.
A definitive agreement pertaining to the acquisition of TEQ was signed by Sonoco on 18 November last year.
TEQ is a manufacturer of thermoformed packaging serving healthcare, medical device and consumer markets.
The company recorded sales of $87m in the fiscal year ended 30 September last year.
Headquartered in Huntley, Illinois, TEQ operates three thermoforming and extrusion facilities in the US as well as a thermoforming facility in the UK, and thermoforming and molded-fiber manufacturing facility in Poland.
Each facility is equipped with advanced cleanroom capabilities to facilitate the production of sterile, barrier packaging systems for pharmaceuticals and medical devices.
Additionally, TEQ produces recyclable, molded-pulp-fiber packaging and thermoformed plastic packaging for multiple consumer products mainly in Europe.
Sonoco president and CEO Rob Tiede said: “The fast-growing healthcare packaging space is a key area of growth for Sonoco and with the addition of TEQ we now have a suite of products and services available to become a much larger supplier to healthcare and medical device manufacturers.
“Entering 2020, Sonoco Healthcare Packaging group now includes TEQ’s broad capabilities, along with our best-in-class ThermoSafe temperature-assured pharmaceutical packaging; injection-molded vials, multi-cell cuvettes and appliances; thermoformed trays for medical devices and OTC medical products; and our Alloyd heat-sealing equipment for commercial medical applications.”
Sonoco funded TEQ acquisition using short-term credit facilities
Sonoco has funded the transaction using its short-term credit facilities and it is expected to be accretive to the company’s 2020 earnings.
With the completion of the acquisition, TEQ’s financial results will be reported within Sonoco’s Consumer Packaging segment.
In September 2019, Sonoco expanded its sustainable packaging portfolio by launching EnviroFlex PE recyclable polyethylene flexible packaging.
With operations in 36 countries, Sonoco provides a variety of consumer packaging, industrial products, protective packaging, and displays and packaging supply chain services.