Canadian Packaging

Sonoco to acquire Tegrant Corp.

By Canadian Packaging Staff   

General acquisition Metalmark Capital Sonoco Tegrant Corporation

Once completed, the transaction will create a N.A. leader in protective packaging.

The Hartsville, S.C. headquartered Sonoco, one of the largest diversified global packaging companies, has signed a definitive agreement to acquire Tegrant Corporation (formerly SCA Packaging North America‚) a leading provider of highly engineered protective, temperature-assured and retail security packaging solutions, from Metalmark Capital for $550 million in cash. The final consideration is subject to a normal adjustment of net working capital.

According to Harris E. DeLoach, Jr., Sonoco chairman and chief executive officer, the acquisition of Tegrant is the largest in Sonoco’s history and will create a North American leader in multimaterial protective packaging.

Tegrant is projected to generate 2011 sales of approximately $440 million, and when combined with Sonoco, projected sales are expected to be $5-billion in 2012.

Tegrant is headquartered in DeKalb, Ill., and operates three strategic business units:

  • Protexic Brands, the largest business unit, is N.A.’s premier manufacturer of molded expanded foam. It serves a number of industries, including high technology, consumer electronics, automotive, appliances and medical devices;
  • ThermoSafe Brands is the world’s leading provider of temperature-assured solutions, primarily used in packaging temperature-sensitive pharmaceuticals and food;
  • Alloyd Brands is a leading manufacturer and designer of high-visibility packaging, printed products and blister packaging machines for retail and medical markets.

Tegrant operates more than 30 manufacturing, design and testing facilities in the U.S., Mexico and Ireland and employs more than 2,000 employees.

“The addition of Tegrant and its family of businesses significantly advances Sonoco as a protective packaging solutions leader and greatly expands the products, services and capabilities we can offer our customers,” says DeLoach.

“Sonoco’s combined Protective Packaging businesses will represent approximately 11 percent of Sonoco’s projected 2012 sales and further enhance our ability to grow in both consumer and industrial markets globally. As an example, Tegrant brings to Sonoco immediate access to faster growing markets such as medical devices, pharmaceuticals, and health and beauty, while providing us expanded access to a variety of industrial components and automotive markets.”

DeLoach said that Tegrant’s president and chief executive officer, Ron Leach, has agreed to stay with Sonoco and continue leading Tegrant’s businesses. John Colyer, Sonoco’s vice-president, Global Industrial Converting, will be given expanded responsibility for the Company’s global protective packaging, tubes and cores, and wire and cable reels integration leader for the combined Sonoco Protective Packaging businesses.

Macquarie Capital served as financial advisor to Sonoco. Tegrant was represented by Sagent Advisors.

About Sonoco

Founded in 1899, Sonoco is a $4.1-billion global manufacturer of industrial and consumer products and provider of packaging services, with more than 300 operations in 34 countries, serving customers in some 85 nations. Sonoco is a proud member of the Dow Jones Sustainability World Index. For more information, visit

About Metalmark Capital

Metalmark Capital is a leading private equity firm whose principals have a long track record of successful investing in targeted sectors, with particular focus and competence in energy and natural resources, industrials and healthcare. Metalmark Capital seeks to build long-term value through active and supportive partnerships with the companies and management teams in which it invests. Metalmark Capital is an investment center of Citi Capital Advisors. For more information, visit


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