Sonoco has signed a definitive agreement to acquire Highland Packaging Solutions for approximately $150 million in cash. The transaction is subject to normal regulatory review and is expected to close in the 2Q 2018, as the company says in the press release received by Lesprom Network.
Owned by Steve Maxwell, CEO, and John Durham, along with select members of the company’s leadership team, Highland has grown from a regional supplier of agriculture packaging products into a global packaging company with 2017 net sales of approximately $90 million. The Company has approximately 425 employees operating a world-class production facility in Plant City producing a total packaging solution for customers that includes sophisticated engineered containers, flexographic printed labels and inventory management through distribution warehouses in the Southeast and West Coast of the United States.
“We are extremely excited to have Highland join the Sonoco family as it significantly strengthens our Perimeter of the Store strategy, serving consumers’ growing demand for fresh and natural foods,” said Rob C. Tiede, Sonoco’s executive vice president, chief operating officer and CEO-elect.
Tiede said the acquisition of Highland will be accretive to earnings in 2018, and the purchase price represents an EBITDA multiple of approximately 6.5 times post-synergies and tax benefits from the write-up of intangibles.
Maxwell, Highland President John Baird and many of Highland’s leadership, sales and operations teams will remain, and Highland expects no changes in customer relationships.
Highland is a privately owned producer of thermoformed plastic packaging for fresh produce and dairy products, based in Plant City, Florida.
Sonoco is a global provider of a variety of consumer packaging, industrial products, protective packaging, and displays and packaging supply chain services.
