Sonoco has completed the sale of its rigid plastics blow molding operations to Amcor, a global leader of rigid and flexible packaging products, for $280 million.
Sonoco’s rigid plastics blow molding operations include seven manufacturing facilities in the U.S. and Canada with 850 employees producing containers serving the personal care and food and beverage markets. The disposition of these operations is expected to impact annual sales by approximately $205 million. The reduction in sales is expected to impact Sonoco’s 4Q 2016 and full year 2017 sales comparison by approximately $30 million and $175 million, respectively. The disposition is not expected to notably affect operating margin percentages for the Company’s Consumer Packaging segment.
According to Jack Sanders, Sonoco president and CEO, the decision to sell the blow molding operations was made to focus the Company’s Consumer Packaging portfolio and provide resources to further expand its targeted growth businesses, including flexible packaging, thermoforming plastics and temperature-assurance packaging for transporting pharmaceuticals, biologics and vaccines.
Sonoco is a global provider of a variety of consumer packaging, industrial products, protective packaging, and displays and packaging supply chain services.
