Sonoco agrees to acquire Ball Metalpack
Sonoco, a major sustainable packaging company, has agreed to acquire Ball Metalpack.
The company entered into a definitive agreement to acquire Ball Metalpack for $1.35 billion (€1.19 billion), before taking into consideration tax benefits with an estimated net present value of approximately $180 million (€159 million).
Ball Metalpack is a leading manufacturer of sustainable metal packaging for food and household products and North America’s largest aerosol producer. It is a joint venture owned by Platinum Equity 51%) and Ball Corporation (49%).
Previously part of Ball Corporation, Ball Metalpack, headquartered in Broomfield, Colorado, was formed in 2018 and has more than 100 years of experience in producing steel tinplate food and aerosol cans, as well as closures and packaging components from eight operations across the US. The company is projected to generate around $850 million (€752 million) in revenue and $111 million (€98 million) of adjusted EBITDA in 2021.
“This acquisition fits our strategy of investing in Sonoco’s core businesses as it complements our largest consumer packaging franchise – our iconic global Paper, Cans and Closures business,” said Howard Coker, Sonoco’s president and CEO.
“In addition, it further expands our already established sustainable packaging portfolio with metal packaging, which is the most recycled packaging substrate in the US.
"We’ve had a long relationship with the Ball Metalpack team, including previously owning and operating two of its manufacturing facilities in Canton. With a comprehensive and innovative product portfolio that has received significant recent investments in new technology and capacity, we believe the addition of Ball Metalpack will further strengthen our stable cash flow generation while driving solid earnings accretion.”
John Hayes, chairman and CEO of Ball Corporation, said the company values its long-standing relationships with Platinum Equity and Sonoco, and that the joint venture is a “positive move”.
Platinum Equity partner Louis Samson commented: “Ball Metalpack has undergone a meaningful transformation over the past three years and is now ready to start a new chapter.
“We made substantial investments in equipment, technology and human capital, so the business is very well positioned for continued growth, and we believe Sonoco is the ideal home going forward.”
Jim Peterson, CEO of Ball Metalpack, will continue to lead the business along with a tenured management team with more than 90 years of experience.
Closing of the transaction is subject to satisfaction of customary closing conditions, including regulatory review, and is expected to be completed in the first quarter of next year.
The company entered into a definitive agreement to acquire Ball Metalpack for $1.35 billion (€1.19 billion), before taking into consideration tax benefits with an estimated net present value of approximately $180 million (€159 million).
Ball Metalpack is a leading manufacturer of sustainable metal packaging for food and household products and North America’s largest aerosol producer. It is a joint venture owned by Platinum Equity 51%) and Ball Corporation (49%).
Previously part of Ball Corporation, Ball Metalpack, headquartered in Broomfield, Colorado, was formed in 2018 and has more than 100 years of experience in producing steel tinplate food and aerosol cans, as well as closures and packaging components from eight operations across the US. The company is projected to generate around $850 million (€752 million) in revenue and $111 million (€98 million) of adjusted EBITDA in 2021.
“This acquisition fits our strategy of investing in Sonoco’s core businesses as it complements our largest consumer packaging franchise – our iconic global Paper, Cans and Closures business,” said Howard Coker, Sonoco’s president and CEO.
“In addition, it further expands our already established sustainable packaging portfolio with metal packaging, which is the most recycled packaging substrate in the US.
"We’ve had a long relationship with the Ball Metalpack team, including previously owning and operating two of its manufacturing facilities in Canton. With a comprehensive and innovative product portfolio that has received significant recent investments in new technology and capacity, we believe the addition of Ball Metalpack will further strengthen our stable cash flow generation while driving solid earnings accretion.”
John Hayes, chairman and CEO of Ball Corporation, said the company values its long-standing relationships with Platinum Equity and Sonoco, and that the joint venture is a “positive move”.
Platinum Equity partner Louis Samson commented: “Ball Metalpack has undergone a meaningful transformation over the past three years and is now ready to start a new chapter.
“We made substantial investments in equipment, technology and human capital, so the business is very well positioned for continued growth, and we believe Sonoco is the ideal home going forward.”
Jim Peterson, CEO of Ball Metalpack, will continue to lead the business along with a tenured management team with more than 90 years of experience.
Closing of the transaction is subject to satisfaction of customary closing conditions, including regulatory review, and is expected to be completed in the first quarter of next year.
