Sonoco to Sell Rigid Plastics Blow Molding Operations
Sonoco, Hartsville, SC/USA, announced it has reached a definitive agreement to sell its rigid plastics blow molding operations to Amcor, Melbourne, Australia,a global leader of rigid and flexible packaging products, for USD 280 million. The transaction is subject to regulatory approvals in the United States.
Sonoco’s rigid plastics blow molding operations include seven manufacturing facilities in the U.S. and Canada with 850 employees producing containers serving the personal care and food and beverage markets. The business generates annual sales of approximately USD 210 million. According to Jack Sanders, Sonoco president and chief executive officer, the decision to sell the blow molding operations was made to focus the Company’s consumer packaging portfolio and provide resources to further expand its targeted growth businesses, including flexible packaging, thermoforming rigid plastics and temperature-assurance packaging for transporting pharmaceuticals, biologics and vaccines.
Over many years Amcor Rigid Plastics has built a position in the specialty container segment through its Diversified Products business, by developing capabilities in house and acquiring specialised technologies. This acquisition will significantly enhance Amcor's product offering by adding complementary capabilities and technologies, including more extensive extrusion blow molding and injection technologies, expertise in producing polyethylene, polypropylene and multi-layer containers, as well as additional decorating capabilities. Total sales of specialty containers in the Diversified Products business will be approximately USD 750 million inclusive of the acquired business, and there are significant opportunities to build on this position with organic growth and further acquisitions.
Amcor CEO and Managing Director Ron Delia said: "The Amcor Rigid Plastics business has significant growth opportunities, including in segments outside of the traditional non-alcoholic beverage markets. Part of our strategy to grow this business includes acquiring specialised manufacturing capabilities which unlock further growth in key segments."
Amcor Rigid Plastics
Would you like to subscribe to our Newsletters on plastics technology and profit from the latest information?
Looking for a new challenge? Check out our jobs market!
Patents encourage innovation: Stay on the ball with the latest innovations in the plastics industry in our patents section.