Sonoco to Acquire Highland Packaging Solutions
March 22 2018 - 6:45AM
Sonoco (NYSE:SON), one of the largest diversified global packaging
companies, today announced it has signed a definitive agreement to
acquire Highland Packaging Solutions for approximately $150 million
in cash. Highland is a privately owned producer of thermoformed
plastic packaging for fresh produce and dairy products, based in
Plant City, Fla. The transaction is subject to normal regulatory
review and is expected to close in the second quarter of 2018.
Owned by Steve Maxwell, Chief Executive Officer, and John
Durham, along with select members of the company’s leadership team,
Highland has grown from a regional supplier of agriculture
packaging products into a global packaging company with 2017 net
sales of approximately $90 million. The Company has approximately
425 employees operating a world-class production facility in Plant
City producing a total packaging solution for customers that
includes sophisticated engineered containers, flexographic printed
labels and inventory management through distribution warehouses in
the Southeast and West Coast of the United States.
“We are extremely excited to have Highland join the Sonoco
family as it significantly strengthens our Perimeter of the Store
strategy, serving consumers’ growing demand for fresh and natural
foods,” said Rob C. Tiede, Sonoco’s executive vice president, chief
operating officer and CEO-elect. “Highland’s recognized
best-in-class manufacturing and effectiveness in product
integration with automated filling machines will add breadth to our
growing produce customer mix through a dedicated manufacturing
facility located in the important Florida produce market, while
also providing us an important entry into egg packaging – a
fast-growing protein source in North America.”
Highland CEO Maxwell commented, “Highland and Sonoco each have
their own strengths, with a similar passion for crusading for our
customers. Joining our two companies together will enable the best
of both companies to be integrated and serve our customers, and
will enable Highland to further enhance our speed to service and
our ability to offer customers the most diverse consumer packaging
formats and solutions in the industry.”
Tiede said the acquisition of Highland will be accretive to
earnings in 2018, and the purchase price represents an EBITDA
multiple of approximately 6.5 times post-synergies and tax benefits
from the write-up of intangibles. Maxwell, Highland President John
Baird and many of Highland’s leadership, sales and operations teams
will remain, and Highland expects no changes in customer
relationships. When the transaction is completed, Highland’s
financial results will be reported within Sonoco’s Consumer
Packaging segment and the business will be operated as part of
Sonoco’s global plastics operations.
See more information on the acquisition
here.
About SonocoFounded in 1899, Sonoco (NYSE:SON)
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. Sonoco is committed to Better Packaging.
Better Life., and ranked first in the Packaging sector on Fortune’s
World’s Most Admired Companies 2018 list. For more information
visit www.sonoco.com.
Contact:Roger Schrum +843-339-6018roger.schrum@sonoco.com
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