Hartsville’s Sonoco to buy Ball Metalpack for $1.35 billion cash
Hartsville-based Sonoco, one of the largest sustainable global packaging companies, has 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 in cash before taking into consideration tax benefits with an estimated net present value of approximately $180 million. Ball Metalpack is a joint venture owned by Platinum Equity and Ball Corporation. Previously part of Ball Corporation, Ball Metalpack, headquartered in Broomfield, Colo., was formed in 2018 and has more than 100 years of experience in producing steel tinplate food and aerosol cans, as well as closures and packaging components from eight operations in Canton and Columbus, Ohio; Milwaukee and Deforest, Wis.; Chestnut Hill, Tenn.; Horsham, Pa.; and Oakdale, Calif. 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. 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.,” said Howard Coker, Sonoco President and CEO. “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.” “Ball Corporation values its long-standing relationships with Platinum Equity and Sonoco. We are pleased with today’s Ball Metalpack news and the value we have collectively created across the tinplate steel packaging business. The joint venture sale is a positive move, and cash proceeds received from Ball’s minority interest will further benefit our shareholders,” said John A. Hayes, chairman and CEO. “This agreement further enhances Ball’s ability to return value to shareholders via share buybacks and dividends, and to make EVA enhancing investments.” “Ball Metalpack has undergone a meaningful transformation over the past three years and is now ready to start a new chapter,” said Platinum Equity Partner Louis Samson. “We made substantial investments in equipment, technology and human capital so the business is very well positioned for continued growth, and we believe Sonoco is the ideal home going forward.” Once the transaction is closed, Sonoco anticipates the acquired business’ financial results will be reported in the Company’s Consumer Packaging segment. Jim Peterson, who is CEO of Ball Metalpack and has more than 15 years of leadership experience in the metal packaging industry, will continue to lead the business along with a tenured management team that has more than 90 years of experience. There are no expected changes in operations or customer relationships as a result of the transaction. Closing of the transaction is subject to satisfaction of customary closing conditions, including regulatory review, and is expected to be completed in the first quarter of 2022.