Ball Metalpack is involved in the manufacturing of sustainable steel containers for aerosol products, food, household consumables, pet food, nutritional and other products in the US
Sonoco has agreed to acquire metal packaging firm Ball Metalpack. (Credit: PRNewsfoto / Platinum Equity)
Protective packaging company Sonoco has agreed to acquire metal packaging company Ball Metalpack from Platinum Equity and Ball for $1.35bn in cash.
In 2018, Ball Metalpack was created as a joint venture between Platinum Equity and Ball.
Platinum Equity owns a 51% stake in Ball Metalpack, while the remaining 49% interest is owned by Ball.
Based in Broomfield, Colorado, Ball Metalpack is involved in the manufacturing of sustainable steel containers for aerosol products, food, household consumables, pet food, nutritional and other products in the US.
Ball Metalpack produces steel tinplate food and aerosol cans, in addition to closures and packaging components from its eight facilities in the US.
The company is expected to generate around $850m in revenue and $111m of adjusted EBITDA in 2021.
Sonoco president and CEO Howard Coker said: “This acquisition fits our strategy of investing in Sonoco’s core businesses as it complements our largest Consumer Packaging franchise – our iconic global Paper Cans and Closures business.
“In addition, it further expands our already established sustainable packaging portfolio with metal packaging, which is the most recycled packaging substrate in the US.”
Subject to satisfaction of customary closing conditions including regulatory review, the deal is expected to complete in the first quarter of next year.
Upon completion of the deal, Sonoco plans to report the acquired business’ financial results in its consumer packaging segment.
J.P. Morgan Securities is acting as exclusive financial advisor to Sonoco, while Freshfields Bruckhaus Deringer is acting as legal advisor.
American multinational investment bank Goldman Sachs is acting as financial advisor to Ball Metalpack, while Latham & Watkins is serving as Platinum Equity’s legal counsel on the deal. Skadden, Arps, Slate, Meagher & Flom is acting as legal counsel to Ball.
Last month, Sonoco acquired US-based D&W Paper Tubes that manufactures sustainable industrial paper tubes and cores.