Wired News – Sonoco Acquired Remaining 70% Interest in Conitex-Sonoco Joint Venture

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LONDON, UK / ACCESSWIRE / May 31, 2018 / If you want access to our free research report on Sonoco Products Co. (NYSE: SON), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=SON as the Company’s latest news hit the wire. On May 29, 2018, the Company announced that it has inked a deal to acquire the remaining 70% interest in the joint venture (JV) of Conitex-Sonoco for approximately $133 million in cash. Conitex-Sonoco is a vertically integrated, global leader in the manufacture of paper-based cones and tubes used in the textile industry. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Sonoco Products most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Deal Details

The transaction is subject to normal international regulatory reviews and is expected to close in Q3 2018.

The acquisition will be modestly accretive to Sonoco’s earnings in 2018.

Conitex-Sonoco’s Chief Operating Officer, Michel Schmidlin, and members of his global leadership team will remain with Sonoco. No changes to customer relationships are expected.

When the transaction is completed, Conitex-Sonoco’s financial results will be reported within Sonoco’s Paper/Industrial Converted Products segment.

Combination Provides Opportunity to Further Grow Sonoco’s Existing Global Paper-Based Tube and Core Business

Rob Tiede, President and CEO of Sonoco, stated that the Conitex-Sonoco relationship has been very successful over the past 20 years, and they see even further opportunity to grow Sonoco’s existing global paper-based tube and core business through this combination, especially in faster-growing emerging markets in Asia where they will be substantially increasing their manufacturing presence while more than doubling their current annual sales in the region.

Tiede added that Sonoco welcomes Conitex-Sonoco’s nearly 1,250 employees and are excited by the prospects for further building strong relationships with their combined customers in Asia, the Americas, and Europe by offering innovative packaging solutions in paperboard, textile carriers, and other value-added products.

Conitex-Sonoco JV

The Conitex-Sonoco JV was formed in 1998 between Texpack, Inc., a Spanish-based global provider of paperboard and paper-based packaging products, and Sonoco’s former North America textile cone business. In 2017, the JV had total sales of approximately $245 million and produced more than 300,000 tons of uncoated recycled paperboard, which was used to produce approximately 1.4 billion tubes and cones for the global spun yarn industry. The company also produces adhesives, flexible intermediate bulk containers and corrugated pallets. The JV has 13 manufacturing locations in 10 countries, including four paper mills and seven cone and tube converting operations as well as two other production facilities.

Sonoco’s Last Acquisition Deal

On April 12, 2018, the Company completed the acquisition of Highland Packaging Solutions, a Plant City, Florida-based leading manufacturer of thermoformed packaging for fresh fruits, vegetables, and eggs found in the fast-growing perimeter of retail supermarkets. The purchase consideration was approximately $150 million in cash. Highland’s financial results would be added to Sonoco’s Consumer Packaging segment, and the business would operate within the Company’s Global Plastics division.

About Sonoco Products Co.

Founded in 1899 and headquartered in Hartsville, South Carolina, Sonoco is a global provider of a variety of consumer packaging, industrial products, protective packaging, and displays and packaging supply chain services. With annualized net sales of approximately $5 billion, the Company has 21,000 employees working in more than 300 operations in 33 countries, serving some of the world’s best-known brands in some 85 nations.

Stock Performance Snapshot

May 30, 2018 – At Wednesday’s closing bell, Sonoco Products’ stock advanced 1.19%, ending the trading session at $51.97.

Volume traded for the day: 510.70 thousand shares.

Stock performance in the last month – up 1.19%; previous three-month period – up 8.34%; and past twelve-month period – up 1.96%

After yesterday’s close, Sonoco Products’ market cap was at $5.17 billion.

Price to Earnings (P/E) ratio was at 36.32.

The stock has a dividend yield of 3.16%.

The stock is part of the Consumer Goods sector, categorized under the Packaging & Containers industry. This sector was up 0.9% at the end of the session.

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