Sonoco Acquiring Ball Metalpack for $1.35B - Modern Distribution Management

Log In

Sonoco Acquiring Ball Metalpack for $1.35B

Sustainable global packaging company says it reached a deal to acquire a leading manufacturer of for food and household products.
On June 30, industrial blade manufacturer Valley Grinding & Manufacturing announced the acquisition of Quality Edge, a  knife manufacturer with specialization in the food industry.
Author
Date

Hartsville, South Carolina-based Sonoco (NYSE: SON) says it entered into a definitive agreement to acquire Ball Metalpack — a leading manufacturer of sustainable metal packaging for food and household products and the largest aerosol producer in North America — for $1.35 billion.

The cash offer does not take into consideration tax benefits with an estimated net present value of approximately $180 million, Sonoco said.

Ball Metalpack, headquartered in Broomfield, Colorado, is a joint venture owned by Platinum Equity and Ball Corporation (NYSE: BLL). The company produces steel tinplate food and aerosol cans, as well as closures and packaging components from eight operations in Canton and Columbus, Ohio; Milwaukee and Deforest, Wisconsin; Chestnut Hill, Tennessee; Horsham, Pennsylvania; and Oakdale, California.

Ball Metalpack is projected to generate approximately $850 million in revenue and $111 million of adjusted EBITDA in 2021.

“This acquisition fits our strategy of investing in Sonoco’s core businesses as it complements our largest Consumer Packaging franchise — our iconic global Paper Cans and Closures business,” said Howard Coker, Sonoco president and CEO. “In addition, it further expands our already established sustainable packaging portfolio with metal packaging, which is the most recycled packaging substrate in the U.S. We’ve had a long relationship with the Ball Metalpack team, including previously owning and operating two of their manufacturing facilities in Canton. With a comprehensive and innovative product portfolio that has received significant recent investments in new technology and capacity, we believe the addition of Ball Metalpack will further strengthen our stable cash flow generation while driving solid earnings accretion.”

Once the deal is finalized, Sonoco says it anticipates the acquired business’ financial results will be reported in the Company’s Consumer Packaging segment.

Jim Peterson, CEO of Ball Metalpack, will continue to lead the business alongside a tenured management team that has more than 90 years of experience.

Sonoco says there are no expected changes in operations or customer relationships as a result of the transaction.

Finalizing the acquisition is subject to satisfaction of customary closing conditions, including regulatory review, and is expected to be completed in the first quarter of 2022.

Related Posts

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.