Sonoco to Acquire Weidenhammer Packaging
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Sonoco, Hartsville, S.C., USA, this week announced that it will acquire Weidenhammer Packaging Group, Hockenheim, Germany, an European provider of composite cans, composite drums, and rigid containers, for EUR 286 million, or approximately $383 million, in cash. The final consideration is subject to a normal adjustment of net working capital.
Weidenhammer Packaging has approximately 1,100 employees and operates 13 production facilities, including five in Germany, along with individual plants in Belgium, France, Greece, the Netherlands, U.K., U.S., Chile, and Russia. Markets served by the company include processed foods, powdered beverages, tobacco, confectionery, personal care, pet food, pharmaceuticals, and home and garden products.
According to M. Jack Sanders, Sonoco president and CEO, the acquisition of family-owned Weidenhammer Packaging will create a global leader in rigid paper packaging and is expected to increase Sonoco's global consumer-related packaging and services business to approximately $2.8 billion in annual sales or approximately 53% of the company's combined revenue of approximately $5.3 billion. In addition, the combination is expected to increase Sonoco's net sales in Europe to approximately 21% of total sales.
