Global packaging company Sonoco, Hartsville, SC, has completed the all-cash purchase of privately held, Hayes Manufacturing Group Inc., Neenah, WI, a $56-million manufacturer of paper-based tubes, cores and composite cans.
Hayes produces paper-based tubes and cores serving the paper, plastic, foil/metal, paper converters, tape/label and construction industries. This sector accounts for approximately 80% of total sales. The composite can business provides approximately 20% of total sales.
Hayes consumes over 50,000 tons of paperboard annually, including approximately 24,000 tons from U.S. Paper Mills, which Sonoco recently purchased. Most of the remaining tonnage used by Hayes will be produced from Sonoco's paper mills. Hayes will also provide Sonoco with several additional specialty product lines for its composite can operations.
Sonoco recently announced acquisitions of Hayes Manufacturing; U.S. Paper Corp.; Cumberland Wood Products; Phoenix Packaging Corp.; the Kaiping, China, converting facility; and the pending acquisition of the Hutchinson, Kansas, paper mill. The company said that, on an aggregate basis, it paid approximately one-time annual sales for these acquisitions. These acquisitions should add approximately $215 million in annual trade sales. Sonoco, founded in 1899, is a $2.7 billion manufacturer of industrial and consumer packaging products and provider of packaging services, with approximately 295 operations in 33 countries serving customers in 85 nations.