Sonoco Reached Agreement to Divest its Protective Solutions Packaging Business

SEATTLE (Scrap Monster): Hartsville-headquartered Sonoco Products Company announced that it has reached a definitive agreement to sell its Protective Solutions Packaging business to Black Diamond Capital Management, LLC for around $80 million in cash. The transaction is subject to customary closing conditions and is expected to be completed during H1 this year.

The announced divestiture is part of the ongoing evaluation of its business portfolio by Sonoco and is consistent with its previously declared strategic and investment priorities, the company press release said.

The Protective Solutions Packaging business of the company runs nine manufacturing facilities in total, employing approximately 900 people. The business segment had reported net sales of approximately $170 million during the previous year.

Commenting on the development, Howard Coker, President and CEO of Sonoco stated that the divestiture will build on its previously articulated strategy of divesting non-core assets and refocusing on core businesses in order to deliver greater profitability and market leadership. He thanked the entire Protective Solutions team for their several years of outstanding customer service. Furthermore, he wished continued success to the entire team in the future.