Sonoco Products To Sell Thermoformed And Flexibles Packaging Business To TOPPAN For About $1.8 Bln

(RTTNews) - Sonoco Products Co. (SON) said it agreed to sell its Thermoformed and Flexibles Packaging business (TFP) to TOPPAN Holdings Inc. for approximately $1.8 billion on a cash-free and debt-free basis and subject to customary adjustments.

The Transaction, which reflects the completion of the previously announced strategic review of Sonocos TFP business, is subject to customary closing conditions, including regulatory approvals, and is expected to close in the first half of 2025.

Sonoco expects to use net proceeds from the transaction to repay existing debt.

The decision to sell TFP business accelerates our portfolio simplification strategy, streamlines our organizational structure, and enables more focused capital investments in the company's remaining industrial paper and consumer packaging businesses, said Howard Coker, Sonocos President and Chief Executive Officer.