Sonoco sells ThermoSafe unit to Arsenal Capital for up to $725 million

HARTSVILLE, S.C. - Sonoco Products Company (NYSE:SON) announced Monday it has completed the sale of its ThermoSafe business unit to Arsenal Capital Partners for a purchase price of up to $725 million. The packaging company, currently trading at $39.89, has seen its shares decline approximately 14% year-to-date according to InvestingPro data.

The transaction includes $650 million payable at closing on a cash-free and debt-free basis, with potential additional consideration of up to $75 million if certain performance measures for calendar year 2025 are met.

Sonoco plans to use the net proceeds from the transaction to reduce existing debt. The company projects that the divestiture will lower its net leverage ratio to approximately 3.4x, excluding any additional consideration.

"The completion of the sale of ThermoSafe substantially concludes Sonoco’s portfolio transformation, which simplified our operations from a large portfolio of businesses into two core global business segments focused on metal and paper consumer and industrial packaging," said Howard Coker, Sonoco’s President and Chief Executive Officer.

ThermoSafe provides temperature assurance technologies for pharmaceuticals, biologics, vaccines, and other healthcare products, offering solutions ranging from parcel shippers to bulk and reusable containers.

Morgan Stanley & Co. LLC served as financial advisor to Sonoco, while Freshfields LLP acted as the company’s legal advisor. Raymond James was the lead financial advisor to Arsenal, with Kirkland & Ellis LLP serving as Arsenal’s legal counsel.

The divestiture represents the latest step in Sonoco’s strategy to focus on its core packaging businesses. The company currently operates approximately 285 facilities across 40 countries with about 23,400 employees.

This article is based on a press release statement from Sonoco Products Company.

In other recent news, Sonoco Products Company released its Q3 2025 earnings report, showing a slight miss on both earnings per share and revenue expectations. The company reported an EPS of $1.92, which was below the forecasted $1.96. Net sales for the quarter reached $2.13 billion, falling short of the anticipated $2.16 billion. Despite these results, the company remains optimistic about its strategic initiatives. Analysts from various firms are closely monitoring these developments. Investors are watching how the company will navigate its future prospects. These recent updates are crucial for stakeholders evaluating Sonoco Products’ financial performance.

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