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HARTSVILLE, S.C. - Sonoco Products Company (NYSE: SON), currently valued at $4.66 billion in market capitalization and trading near its 52-week low of $44.35, has finalized the sale of its Thermoformed and Flexibles Packaging business to TOPPAN Holdings Inc. for approximately $1.8 billion in a cash-free, debt-free transaction, subject to customary adjustments. According to InvestingPro analysis, the company maintains a GOOD overall financial health score. This strategic move is part of Sonoco’s efforts to streamline its operations and focus on its core sustainable metal and fiber consumer and industrial packaging businesses.
President and CEO Howard Coker remarked on the significance of the transaction, "Today marks a milestone in achieving our strategy to transform Sonoco into a simpler, stronger and more sustainable Company." He also acknowledged the transition of approximately 4,500 employees to Toppan and the company’s intention to use the $1.5 billion of after-tax cash proceeds from the sale to reduce its leverage. This move is particularly significant given the company’s current debt-to-equity ratio of 3.24x, as reported by InvestingPro.
The divestiture aligns with Sonoco’s commitment to simplifying its portfolio and improving its financial position, which is expected to support further investment in its sustainable packaging divisions. The company’s advisors for the transaction included Goldman Sachs & Co. LLC and RBC Capital Markets, LLC, with legal counsel from Freshfields LLP. TOPPAN was advised by Houlihan Lokey and Morrison & Foerster LLP, with additional financial advice from Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
Sonoco is set to report its first quarter financial results on April 29, 2025, after market close, with a conference call hosted by company management scheduled for the following day. The live audio webcast and supporting materials will be available on Sonoco’s Investor Relations website. InvestingPro data shows analysts expect sales growth this year, with 5 analysts recently revising their earnings estimates upward. Get access to 10+ additional exclusive ProTips and comprehensive analysis through InvestingPro’s detailed research reports.
Founded in 1899, Sonoco has grown into a multi-billion-dollar enterprise with around 23,400 employees operating in 285 locations across 40 countries. The company has been recognized as one of America’s Most Responsible Companies by Newsweek and continues to emphasize innovation and collaboration in its operations. Notable achievements include maintaining dividend payments for 55 consecutive years, with a current dividend yield of 4.4% and a track record of raising dividends for 42 consecutive years.
The information in this article is based on a press release statement and has not been independently verified. The forward-looking statements in the press release are subject to risks and uncertainties, and actual results may differ materially from those projected. Sonoco undertakes no obligation to update these statements as per applicable law.
In other recent news, Sonae has reported a strong financial performance for the first quarter of 2025, showcasing an 18% increase in revenue, reaching nearly €10 billion. The company’s EBITDA exceeded €1 billion for the first time, marking a 4.5% growth. Strategic acquisitions contributed to this growth, particularly in sectors like pet care and cybersecurity. Additionally, Sonae has proposed a 5% increase in its dividend per share, reflecting its commitment to returning value to shareholders. The company also made significant investments, including the merger of Arenal with Druni, strengthening its position in the health and wellness sector in Iberia. In the telecommunications sector, NOS, a subsidiary of Sonae, completed the acquisition of Cladet Portugal, enhancing its offerings in the ICT space. Despite an increase in debt due to these acquisitions, Sonae maintains a comfortable leverage ratio. The company continues to focus on strategic goals, such as achieving 100% plastic packaging recyclability by 2025 and increasing female leadership positions to 45% by 2026.
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