The sale forms part of Sonoco’s efforts to simplify its operating structure and expand core consumer and industrial packaging businesses
Diversified packaging firm Sonoco has closed the sale of its European contract packaging business to a subsidiary of Prairie Industries for in a deal worth $120m.
Sonoco’s European contract packaging business, named Sonoco Poland Packaging Services, is engaged in providing full-service custom packaging and supply chain management solutions to consumer product goods firms across the globe.
Employing around 2,600 people, Sonoco Poland Packaging Services operates six contract packaging facilities in three locations and a warehouse facility in Poland.
The business, which has been part of Sonoco’s Display and Packaging segment, generated net sales of around $300m in 2019.
The divestment is part of Sonoco’s strategy to simplify its operating structure and expanding its core consumer and industrial packaging businesses.
Net proceeds from the sale, together with available cash, will be used by Sonoco to reduce short-term debt and further improve its liquidity position.
Sonoco president and CEO Howard Coker earlier said: “Since opening our Europe contract packaging business with a single customer 20 years ago, we have built this business to serve some of the best known global consumer product brands supplying consumers in more than 40 countries in Europe, the Middle East, Africa and Asia.”
Recently, Sonoco unit Sonoco Protective Solutions has introduced new lightweight recyclable packaging solutions, EnviroSense FiberMax and EnviroSense FiberMax Roll, for heavyweight products.
The new paper-based packaging solutions expands Sonoco’s EnviroSense sustainable packaging portfolio.
Established in 1899, Sonoco offers consumer packaging, industrial products, protective packaging, and displays and packaging supply chain services.
Backed by Halifax Group, Prairie Industries offers a wide range of packaging, converting, manufacturing, and warehousing services.