Sonoco (Hartsville, SC) has agreed to sell its rigid plastics blowmolding business for $280 million to global packaging company Amcor (Melbourne, Australia). The deal will expand Amcor's rigid plastics division located in Ann Arbor, MI, and allow the company to access U.S customers, Amcor said. The acquisition remains subject to regulatory approvals.
Sonoco manufactures custom rigid plastic bottles, jars, overcaps and closures for the food, beverage, pharmaceutical, health and beauty, and personal care markets in seven plants located in the U.S. and Canada.
“This acquisition will directly support our strategy to meet our customers’ growing needs,” said Mike Schmitt, Amcor Rigid Plastics President. “The combined assets and talents of Amcor Rigid Plastics and Sonoco will allow us to meet strategic customer growth objectives while expanding our extrusion and injection molding assets and adding advanced decorating capabilities.”
The deal follows in the wake of Amcor's latest acquisition of privately-owned American flexible packaging business Deluxe Packages, as well as a move to buy the manufacturing assets and intellectual property of preform manufacturing business Eco-Groupe.
Since 2010, Amcor Rigid Plastics has been developing a strong presence in the specialty container segment through its Diversified Products business unit. With an increased focus on healthcare, food, and home and personal care markets, Amcor Rigid Plastics has developed several in-house capabilities and acquired specialized technologies to help customers grow.
According to Jack Sanders, Sonoco President and Chief Executive Officer, the decision to sell the blowmolding operations was made to focus the company’s consumer packaging portfolio and provide resources to further expand its targeted growth businesses, including flexible packaging, thermoforming rigid plastics and temperature-assurance packaging for transporting pharmaceuticals, biologics and vaccines.
Amcor employs more than 29,000 people worldwide and operates in more than 40 countries in 180-plus sites. The company supplies rigid and flexible packaging solutions to enhance products consumers use in everyday life.