Written on: December 20, 2021 by SprayTM
Packaging products provider Sonoco Products Co. said on Dec. 20 that it will buy sustainable metal packaging manufacturer Ball Metalpack for $1.35 billion in cash to expand its sustainable packing portfolio. Sonoco expects to realize tax benefits of about $180 million with the deal.
Colorado-based Ball Metalpack, a joint venture owned by Platinum Equity and Ball Corp., develops sustainable packaging solutions and has been producing steel tinplate aerosol cans and food cans for more than a century.
Ball Metalpack is projected to generate about $850 million in revenue and $111 million of adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in 2021, Sonoco said.
“We believe the addition of Ball Metalpack will further strengthen our stable cash flow generation while driving solid earnings accretion,” Sonoco’s Chief Executive Officer, Howard Coker, said.
Ball Metalpack’s boss Jim Peterson will continue to lead the company after the deal but the business would be under Sonoco’s consumer packaging division.
