Sonoco has signed a definitive agreement to acquire the remaining 70% interest in the joint venture of Conitex Sonoco for approximately $133 million in cash. The transaction is subject to normal international regulatory reviews and is expected to close in the 3Q 2018, as the company says in the press release received by Lesprom Network.
The Conitex Sonoco joint venture was formed in 1998 between Texpack, Inc., a Spanish-based global provider of paperboard and paper-based packaging products, and Sonoco’s former North America textile cone business. In 2017, the joint venture had total sales of approximately $245 million and produced more than 300,000 tons of uncoated recycled paperboard, which was used to produce approximately 1.4 billion tubes and cones for the global spun yarn industry. The company also produces adhesives, flexible intermediate bulk containers and corrugated pallets.
The acquisition of Conitex Sonoco will be modestly accretive to Sonoco’s earnings in 2018. Conitex Sonoco’s Chief Operating Officer Michel Schmidlin and members of his global leadership team will remain with Sonoco, and there are no expected changes to customer relationships.
Conitex Sonoco is a vertically integrated, global leader in the manufacture of paper-based cones and tubes used in the textile industry.
Sonoco is one of the largest diversified global packaging companies.
