Sonoco Completes Sale of Thermoformed and Flexibles Packaging Business to Toppan
April 1, 2025 – Hartsville, South Carolina – Sonoco Products Company, a leading global provider of sustainable packaging solutions, has announced the successful completion of the sale of its Thermoformed and Flexibles Packaging (TFP) business to TOPPAN Holdings Inc. for a total purchase price of approximately $1.8 billion.
Background
Sonoco, a core mid-cap growth and value equity, has been a global leader in high-value sustainable packaging for many years. The Company’s TFP business, based in Hartsville, South Carolina, specializes in producing thermoformed and flexible packaging for various industries, including food and beverage, industrial, and medical. This division accounted for a significant portion of Sonoco’s revenue.
The Transaction
The sale of TFP to Toppan, a leading global provider of packaging, printing, and digital solutions, is part of Sonoco’s ongoing strategy to focus on its core businesses and create shareholder value. The Transaction is valued at approximately $1.8 billion on a cash-free and debt-free basis, subject to customary adjustments.
Impact on Consumers
The sale of TFP to Toppan is expected to have minimal direct impact on consumers. However, the deal could result in improved packaging solutions due to the combined expertise and resources of both companies. Toppan’s extensive experience in the packaging industry and Sonoco’s focus on sustainability are expected to lead to innovative, eco-friendly packaging solutions.
Impact on the World
The packaging industry is a significant contributor to global waste, with an estimated 300 million tons produced each year. The sale of Sonoco’s TFP business to Toppan is a step towards addressing this issue, as both companies are committed to sustainable packaging solutions. The merger is expected to lead to increased efficiency, innovation, and competitiveness in the industry.
Conclusion
Sonoco’s sale of its Thermoformed and Flexibles Packaging business to Toppan is a strategic move that will enable the Company to focus on its core businesses and create shareholder value. The Transaction is expected to have minimal direct impact on consumers but could lead to improved packaging solutions and increased sustainability in the industry. The merger of Sonoco’s expertise in sustainable packaging and Toppan’s extensive experience in the packaging industry is a promising development for the future of sustainable packaging solutions.
- Sonoco completes sale of TFP business to Toppan for $1.8 billion.
- Combined expertise and resources of both companies expected to lead to innovative, eco-friendly packaging solutions.
- Minimal direct impact on consumers but potential for improved packaging and sustainability in the industry.
