Sonoco Products Company, a global leader in high-value sustainable packaging, today announced that it has entered into an agreement to sell its thermoformed and flexible packaging (“TFP”) business to Toppan Holdings for approximately $1.8 billion, on a cash and debt-free basis, subject to customary adjustments
. The Transaction, which reflects the completion of the previously announced strategic review of Sonoco’s TFP business, is subject to customary closing conditions, including regulatory approvals, and is expected to be completed in the first half of 2025. The net proceeds of the transaction will be used to repay existing debt.
Howard Coker, Sonoco’s president and chief executive officer has stated that: “the decision to sell our TFP business accelerates our portfolio simplification strategy, optimizes our organizational structure, and allows for more focused capital investments in our remaining industrial paper and consumer packaging businesses.”he said. “TFP is a great business with leadership positions in the markets it serves. We deeply value TFP’s history as part of the Sonoco family, and I am personally proud of their long-term commitment to serving our customers with innovative, high-quality packaging products. We will work closely with Toppan to ensure a successful transition for our employees, customers and suppliers, and wish them all the best in the future.”
