The acquisition will enable Hood Container to expand its product offerings to Sonoco Display and Packaging’s existing customer base
US-based Hood Container has completed the acquisition of Sonoco’s US Display and Packaging business for $80m in cash.
Sonoco Display and Packaging business offers point-of-purchase display design, manufacturing and fulfilment services, as well as, contract packaging services for consumer product customers with over 250 brands.
Based in Winston-Salem, North Carolina, Sonoco Display and Packaging business has eight manufacturing and fulfilment facilities along with four sales and design centres.
With around 450 employees, the business generated net sales of around $135m in 2020.
The acquisition will enable Hood Container to expand its product offerings to Sonoco Display and Packaging’s existing customer base, in addition to increasing the company’s domestic footprint.
Sonoco president and CEO Howard Coker said: “Our U.S. Display and Packaging business has been an industry pioneer with a legacy of providing innovative solutions for complex supply chain challenges.
“However, Sonoco is focused on growing our core Consumer and Industrial packaging businesses around the world, and by divesting this business we expect to apply proceeds to further invest in ourselves while returning value to our shareholders.”
Rothschild & Co served as financial advisor to Sonoco on the deal, while Haynsworth Sinkler Boyd acted as legal advisor.
Based in Atlanta, Georgia, Hood Container is a family-owned and integrated paperboard and speciality paper manufacturer.
The company offers containerboard, kraft paper, corrugated boxes, high-graphic displays and contract packaging, corrugated, folded box and display products.
Established in 1899, Sonoco offers a range of consumer packaging, industrial paper packaging, healthcare, protective and retail packaging and industrial plastic products.
In December last year, Sonoco completed the divestment of its European contract packaging business to a subsidiary of Prairie Industries.