Sonoco Products completes acquisition of Ball Metalpack

Hartsville-based Sonoco Products, one of the largest sustainable global packaging companies, has completed the acquisition of Ball Metalpack, a leading manufacturer of sustainable metal packaging for food and household products and the largest aerosol can producer in North America.
Ball Metalpack was a joint venture owned by Platinum Equity and Ball Corporation.
“Sonoco and Ball Metalpack are a clear strategic fit. The metal packaging business complements Sonoco’s largest Consumer Packaging franchise – our iconic global Paper Cans and Closures business. In addition, this combination expands Sonoco’s already established sustainable packaging portfolio to include metal packaging, which is one of the world’s top circular economy adapted products,” said Howard Coker, President and CEO of Sonoco.
“We are extremely excited to welcome 1,300 experienced metal packaging associates into the Sonoco family. With a comprehensive and innovative product portfolio and facilities enhanced by significant recent investments in new technology and capacity, we believe the addition of this metal packaging business will further strengthen our stable cash flow generation and provide immediate earnings accretion.”
Previously part of Ball Corporation, the Ball Metalpack joint venture, headquartered in Broomfield, Colo., was formed in 2018 and has more than 100 years of experience 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 generated approximately $850 million in revenue and $114 million of adjusted EBITDA in 2021.
The Ball Metalpack name is being changed to Sonoco and its financial results are expected to be reported in Sonoco’s Consumer Packaging segment.
Jim Peterson, a 15-year leader in the metal packaging industry, will remain as President of Sonoco Metal Packaging, reporting to Rodger Fuller, Executive Vice President.
The business’ tenured management team also will remain with the business and there are no expected changes in operations or customer relationships as a result of the acquisition.
Sonoco acquired Ball Metalpack for $1.35 billion in cash subject to customary adjustments, including for working capital, cash and indebtedness.
The acquisition was funded by proceeds from the company’s recently completed $1.2 billion green bond issuance, together with borrowings under a new term-loan facility and its commercial paper program.

Author: Stephan Drew

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