Sonoco Concluded $120 Million Divestiture of Europe Business

SEATTLE (Scrap Monster): Hartsville, South Carolina-headquartered global packaging major Sonoco announced that it has successfully completed the divestiture of its European contract packaging business to a subsidiary of Wisconsin-based Prairie Industries Holdings for a sum of $120 million in cash. The divestiture was initially announced in the month of October this year.

According to Sonoco press release, the divestiture is part of its efforts towards simplification of its operating structure, so as to focus on its core Consumer and Industrial packaging businesses. The net proceeds from the sale will be utilized by the company towards paying off the short-term debt, thereby improving its strong liquidity position.

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Sonoco’s Europe contract packaging business comprises of six contract packaging facilities in three locations and a warehouse all in Poland. The business has been part of the company’s Display and Packaging segment. The business, employing approximately 2,600 employees, had produced net sales of approximately $300 million during the previous year.

The company’s financial advisor on the transaction was Rothschild & Co. Also, Haynsworth Sinkler Boyd served as the legal advisor.

Prairie Industries Holdings is backed by the Washington, D.C.-based The Halifax Group.