Sonoco completes sale of thermoformed, flexible packaging business to Toppan

Hartsville, South Carolina-based packaging producer Sonoco Products Co. has completed the sale of its thermoformed and flexibles packaging (TFP) business to Toppan Holdings Inc. for approximately $1.8 billion on a cash-free and debt-free basis and subject to customary adjustments.

The sale first was announced in late December 2024. At the time, Sonoco said the transaction reflected the completion of a strategic review of its TFP business.

“Today marks a milestone in achieving our strategy to transform Sonoco into a simpler, stronger and more sustainable company,” Sonoco President and CEO Howard Coker says. “We extend our best wishes for continued success to our approximately 4,500 former TFP teammates and their new Toppan team.

“As previously communicated, we are utilizing the approximately $1.5 billion of after-tax cash proceeds to reduce leverage. Sonoco is moving forward with a focused portfolio and an improved financial position that will enable us to further invest in growing our sustainable metal and fiber consumer and industrial packaging businesses.”

Toppan, headquartered in Tokyo, says the acquisition is “highly complementary,” combining Sonoco’s robust sales network, customer base and solution development with Toppan’s global technical expertise and manufacturing capabilities. The company notes Sonoco’s TFP business, which generated approximately $1.3 billion in revenue in 2023 on a pro forma standalone basis, serves a wide range of customers in food, retail and medical verticals, and provides a variety of complex packaging to value-added categories including snacks, condiments, healthcare, prepared meals, fresh products, coffee and pet food.

As part of the transition, TFP now will operate under the Toppan name, with its financial results reported in Toppan’s Living & Industry segment. Russell Grissett, who has more than 30 years of experience at Sonoco, has been appointed CEO of the new company, reporting to Toppan Head of Global Packaging Business and Managing Executive Officer of Toppan Inc. Masahiko Tatewaki. Toppan says under Russell’s leadership, the existing management team will remain in place to ensure business continuity.

“The integration of Sonoco TFP into the Toppan Group is a significant step to enhance our customer experience and provide solutions on a global scale,” Tatewaki says. “We are extremely excited to welcome the experienced and talented Sonoco TFP team to the Toppan Group.”