$383-million cash deal nets Sonoco Europe's leading provider of composite cans, drums and rigid plastic containers to create global leader in rigid paper packaging.
August 25, 2014
by Canadian Packaging Staff
HARTSVILLE, SC—Sonoco, one of the largest diversified global packaging companies, has recently announced it has signed a definitive agreement to acquire Weidenhammer Packaging Group, Europe’s leading provider of composite cans along with composite drums and rigid plastic containers, for €286 million (~ US$383 million) in cash.
Weidenhammer Packaging, headquartered in Hockenheim, Germany, 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.
In addition to producing composite cans, drums and luxury tubes, Weidenhammer produces unique rigid plastic containers using state-of-the-art thin-walled injection molding technology with modern in-mold labeling. 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 chief executive officer, the acquisition of family-owned Weidenhammer Packaging Group 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 percent 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 percent of total sales.
Commenting on the acquisition, Sanders says, “Combining Weidenhammer’s state-of-the-art production and technological capability places Sonoco in a leading position to provide its global consumer product customers with unparalleled packaging expertise throughout North America and Europe, and creates a strong presence in the emerging markets of Southeast Asia, China, Eastern Europe and South America.”
According to Ralf Weidenhammer, president of Weidenhammer Packaging Group, “Sonoco and Weidenhammer bring 175 years of combined consumer packaging innovation and expertise to our combined customers. After almost 60 years of successful business operations, we are convinced that the merger with Sonoco will open up new opportunities for our business, our customers and partners, as well as to our employees.”
Founded in 1899, Sonoco is a global provider of a variety of consumer packaging, industrial products, protective packaging, and displays and packaging supply chain services. For company information, visit www.sonoco.com.
The Weidenhammer Packaging Group is one of the world’s leading suppliers of composite cans, composite drums and plastic containers. Founded in Hockenheim, Germany in 1955, the family-owned enterprise has evolved over nearly 60 years to become a market and technology leader in its served markets. Weidenhammer customers include international brand product manufacturers Nestle, Unilever, Kellogg’s, Mondelez, Rügenwalder Müehle, Imperial Tobacco and BAT. Further information is available at www.weidenhammer.de/en/home.