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

HARTSVILLE, S.C. - Sonoco Products Company (NYSE:SON), a packaging solutions provider with a market capitalization of $4.6 billion and a remarkable 42-year streak of dividend increases according to InvestingPro, announced Monday it has signed a definitive agreement to sell its ThermoSafe business unit to Arsenal Capital Partners for up to $725 million, as part of the company’s strategy to streamline its operations.

The deal includes $650 million payable at closing and potential additional consideration of up to $75 million if certain performance measures for calendar year 2025 are met. The transaction is expected to be completed by the end of 2025, subject to regulatory approvals.

Sonoco plans to use the net proceeds to reduce existing debt. The company projects the sale will lower its net leverage ratio to approximately 3.5x.

ThermoSafe, based in Arlington Heights, Illinois, provides temperature-controlled packaging solutions for pharmaceuticals, biologics, vaccines, and other temperature-sensitive products. The business generated over $240 million in sales and approximately $50 million in proforma adjusted EBITDA in 2024. ThermoSafe employs about 900 associates across operations in the Americas, Europe, Middle East, Africa, and Asia.

"With the planned sale of ThermoSafe, we are completing the next step in Sonoco’s portfolio transformation, which has resulted in significantly streamlining our operations from a large portfolio of diversified businesses into two core global business segments," said Howard Coker, President and CEO of Sonoco, according to the press release.

The divestiture represents the latest move in Sonoco’s efforts to focus on its core metal and fiber packaging businesses. The company has been working to simplify its organizational structure while maintaining its position as a provider of sustainable packaging solutions.

Morgan Stanley & Co. LLC acted as financial advisor to Sonoco, with Freshfields LLP serving as legal advisor. Kirkland & Ellis LLP acted as legal advisor to Arsenal Capital Partners.

Sonoco will report its third quarter 2025 financial results on October 29, 2025, after market close. With five analysts recently revising their earnings estimates upward and revenue growth forecast at 46% for the year, InvestingPro analysis indicates strong momentum. Subscribers can access the comprehensive Pro Research Report, which provides detailed insights into Sonoco’s financial health, growth prospects, and peer comparison analysis.

In other recent news, Sonoco Products Company reported its second-quarter 2025 earnings, which showed a mixed financial performance. The company announced an adjusted earnings per share (EPS) of $1.37, which was below the forecasted $1.45, missing expectations by 5.52%. However, Sonoco met revenue expectations, reporting $1.9 billion for the quarter. Despite this, the market reacted unfavorably to the earnings miss. These developments come amid ongoing assessments by analysts and investors regarding the company’s financial health. The earnings report has garnered attention as it reflects the challenges faced by Sonoco in meeting market expectations. Analyst firms are likely to continue evaluating Sonoco’s performance in light of these results.

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