Sonoco Products Company has entered into an agreement to acquire Eviosys Packaging Switzerland GmbH from KPS Capital Partners, LP for approximately $3.9 billion.
June 23, 2024
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Sonoco Products Company (NYSE:SON) has entered into an agreement to acquire Eviosys Packaging Switzerland GmbH from KPS Capital Partners, LP for approximately $3.9 billion on June 22, 2024. A cash consideration of $3.9 billion will be paid by Sonoco Products Company. As part of consideration, $3.9 billion is paid towards common equity of Eviosys Packaging Switzerland GmbH. Sonoco intends to finance the transaction with new debt and the proceeds from an issuance of up to $500 million in equity. If the deal terminated from Sonoco Products the Buyer shall pay to the Seller (or one of its designee) an amount in cash equal to ?100,000,000. The proceeds of the Bridge Loans shall be used by the Borrower (a) to pay all or a portion of the consideration payable pursuant to the Acquisition Documents, (b) to finance the Acquired Group Refinancing and (c) to pay the fees and expenses incurred by the Borrower and its subsidiaries in connection with the Transactions.
Eviosys?s current CEO, Tomas Lopez, will remain with Sonoco and lead the Company?s EMEA metal packaging business. The Transaction is subject to the completion of required works council consultations, the receipt of required regulatory approvals and other customary closing conditions. The Boards of Directors of both companies have unanimously approved the transaction. The Transaction is expected to occur by the end of 2024.
Sonoco expects the Transaction to be immediately accretive to Adjusted EPS and over 25% accretive to 2025 expected Adjusted EPS. Eviosys generates meaningful operating cash flow and pro forma for the transaction Sonoco?s EBITDA minus capital expenditures is expected to be approximately 40% greater in 2025. The acquisition is expected to result in a return on invested capital in excess of Sonoco?s cost of capital beginning in year one. With debt reduction from divestitures and cash from operations, Sonoco expects to achieve net leverage below 3.0x within 24 months of the Transaction.
Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC are serving as financial advisors to Sonoco and Damien R. Zoubek and Zheng (Jonathan) Zhou of Freshfields Bruckhaus Deringer LLP is serving as Sonoco?s legal counsel. Rothschild & Co is acting as financial advisor to Eviosys and Angelo Bonvino and Michael Vogel of Paul, Weiss, Rifkind, Wharton & Garrison LLP is acting as Eviosys?s legal advisor.
Sonoco Products Company is a sustainable global packaging company. The Company's segments include Consumer Packaging and Industrial Paper Packaging. The Consumer Packaging segment's products consist of rigid packaging (paper, metal, and plastic) and flexible packaging, primarily serving the consumer staples market focused on food, beverage, household, and personal products. Its rigid plastic products are comprised of thermoformed plastic trays and enclosures for fresh produce, condiments, and pre-packaged foods. Its flexible packaging is comprised of plastic packaging serving a variety of food and personal product applications. The Industrial Paper Packaging segment's products consist of goods produced from recycled fiber including paperboard tubes, cores, cones and cans; partitions; paper-based protective materials, and uncoated recycled paperboard. Its other businesses consist of a variety of packaging materials including plastic, paper, foam, and various other specialty materials.
Sonoco Products Company has entered into an agreement to acquire Eviosys Packaging Switzerland GmbH from KPS Capital Partners, LP for approximately $3.9 billion.
SONOCO PRODUCTS COMPANY 
