US sustainable packaging group Sonoco to buy Eviosys for $3.9bn

24th Jun 2024 11:55

(Sharecast News) - US sustainable packing company Sonoco said on Monday that it has agreed to buy Eviosys, a food cans, ends and closures manufacturer, from KPS for about $3.9bn.

Sonoco said the deal accelerates its strategy to focus on and scale its core businesses and invest in high return opportunities, both organically and inorganically.

Following the transaction, it will be the leading metal food can and aerosol packaging manufacturer globally.

Sonoco said that both its metal business and Eviosys have meaningful commercial momentum and the transaction facilitates Sonoco's ability to partner with customers and lead with innovation and sustainability.

Eviosys supplies metal packaging and produces food cans and ends, aerosol cans, metal closures and promotional packaging to preserve the products of hundreds of consumer brands.

It has the largest metal food can manufacturing footprint in the EMEA region, with approximately 6,300 employees in 44 manufacturing facilities across 17 countries.

Sonoco said it estimates Eviosys' 2024 revenues will be about $2.5bn and adjusted EBITDA $430m.

Sonoco expects to achieve over $100m of synergies from the integration of Eviosys with its metal can business.

Sonoco president and chief executive Howard Coker said: "The acquisition of Eviosys establishes our global leadership in metal food can and aerosol packaging, marking an exciting milestone in our strategy to scale our core strategic metal packaging platform and position Sonoco for long-term value creation.

"Eviosys brings extensive global reach and an attractive, growing customer base that perfectly complements our existing metal packaging offering. Together with the talented team at Eviosys, we are focused on unlocking new opportunities in attractive end-markets, providing our customers with a stronger value proposition and generating strong returns for our shareholders."