Sonoco has reached a definitive agreement to sell its rigid plastics blow molding operations to Amcor for $280 million.
Subject to regulatory approval in the US, the transaction will include seven Sonoco manufacturing facilities in the US and Canada for the production of containers for the food and beverage industry, with 850 employees between them.
According to Sonoco president and chief executive officer Jack Sanders, the decision to sell the blow molding operation was made so that the company could focus on its consumer packaging portfolio and provide resources to further expand its targeted growth businesses, including flexible packaging, thermoforming rigid plastics and temperature-assurance packaging.
The deal comes after Amcor – a leading player in rigid and flexible packaging products – announced its acquisition of privately owned American flexible packaging business Deluxe Packages, as well as a move to buy the manufacturing assets and intellectual property of preform manufacturing business Eco-Groupe.
© FoodBev Media Ltd 2024