Sonoco Products Company has announced the acquisition of RTS Packaging and one Tennessee-based paper mill from WestRock at a purchase price of USD 330 million.
Sep 08, 2023
Sonoco Products Company announced the completion of its acquisition of the remaining equity interest in RTS Packaging, LLC from joint venture (JV) partner WestRock, and one WestRock paper mill in Chattanooga, Tennessee. The purchase price for this acquisition was USD 330 million, subject to customary price adjustments.
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The acquisition will further strengthen and expand Sonoco’s 100 percent recycled fiber-based packaging solutions to serve growing consumer wine, spirits, food, beauty, and healthcare markets. Prior to the transaction, Sonoco was a 35 percent owner in the JV with WestRock.
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The company funded the acquisition with borrowings under its existing credit facilities and cash on hand. Post-acquisition, Sonoco added a network of 15 operations and 1,100 employees in the U.S., Mexico, and South America. Now, the company’s net debt to adjusted EBITDA ratio is less than 2.9x. The acquisition is expected to be immediately accretive to earnings per share (EPS), excluding the impact of purchase accounting adjustments.
