Sonoco to acquire Eviosys in $3.9B transaction

Global packaging developer Sonoco Products Co., Hartsville, South Carolina, has entered into an agreement to acquire Eviosys, a European food can, ends and closures manufacturer, from KPS Capital Partners for approximately $3.9 billion.

Under the terms of the agreement, Sonoco will acquire Switzerland-based Eviosys from KPS on a cash-free, debt-free basis, and Sonoco has committed financing for the entirety of the transaction price.

The boards of directors of both companies have unanimously approved the transaction, which is expected to occur by the end of this year, subject to the completion of required works council consultations, the receipt of required regulatory approvals and other customary closing conditions. Eviosys’ current CEO, Tomas Lopez, will remain with Sonoco and lead the company’s Europe, the Middle East and Africa (EMEA) metal packaging business.

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Sonoco says the transaction accelerates its strategy to focus on and scale its core businesses and invest in high return opportunities, both organically and inorganically. Following the transaction, Sonoco claims it will be the leading metal food can and aerosol packaging manufacturer globally.

“Both Sonoco’s metal business and Eviosys have meaningful commercial momentum and the transaction facilitates Sonoco’s ability to partner with customers and lead with innovation and sustainability,” the company says in a news release.

Eviosys is a global supplier of metal packaging, producing food cans and ends, aerosol cans, metal closures and promotional packaging to preserve the products of hundreds of consumer brands. Sonoco says Eviosys has the largest metal food can manufacturing footprint in the EMEA region, with approximately 6,300 employees in 44 manufacturing facilities across 17 countries.

Sonoco estimates Eviosys’ 2024 revenues will be approximately $2.5 billion, and its 2024 adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) will be approximately $430 million. Sonoco notes that Eviosys has “meaningful commercial and operational momentum” and has increased its EBITDA by approximately 50 percent since 2021.

Sonoco says it expects to achieve over $100 million of synergies from the integration of Eviosys with Sonoco’s complementary metal can business. Rodger Fuller, the company’s chief operating officer, will lead the integration with a focus on customer and supplier relationships, employee continuity, operational excellence and synergy realization.

“The acquisition of Eviosys establishes our global leadership in metal food can and aerosol packaging, marking an exciting milestone in our strategy to scale our core strategic metal packaging platform and position Sonoco for long-term value creation,” Sonoco President and CEO Howard Coker says. “Eviosys brings extensive global reach and an attractive, growing customer base that perfectly complements our existing metal packaging offering. Together with the talented team at Eviosys, we are focused on unlocking new opportunities in attractive end markets, providing our customers with a stronger value proposition and generating strong returns for our shareholders.”

As part of the agreement, New York-based KPS says Sonoco has the option, under certain circumstances, to pay up to $200 million of the purchase consideration in the form of stock. KPS created Eviosys to acquire Crown Holdings Inc.’s food and consumer packaging business in August 2021 in what it calls a “highly complex global corporate carve-out transaction.”

Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC are serving as financial advisors to Sonoco and Freshfields Bruckhaus Deringer LLP is serving as Sonoco’s legal counsel. Rothschild & Co. is acting as financial advisor to Eviosys and Paul, Weiss, Rifkind, Wharton & Garrison LLP is acting as Eviosys’ legal advisor.

“For over 200 years, we have provided best-in-class metal packaging that enhances the appeal of our customers’ brands," Lopez says. "By combining with Sonoco, we will work to bring our high quality, sustainable and innovative packaging solutions to new and existing customers around the globe. Our companies share a strong commitment to providing the highest levels of customer service, safety for our employees and operating efficiencies, and I look forward to joining the incredibly talented team at Sonoco as we work to deliver the benefits of this acquisition to all our stakeholders.