SON - Sonoco Spends Big: Shakes Up Metal Packaging with $3.9B Eviosys Deal | Benzinga
Sonoco Products Company (NYSE:SON) shares are trading lower after the company inked an agreement to buy Eviosys for around EUR3.615 billion ($3.9 billion) on a cash-free, debt-free basis.
Eviosys manufactures metal packaging, including food cans, ends, aerosol cans, metal closures, and promotional packaging, with the largest footprint in metal food can production across 44 facilities in 17 countries and employing about 6,300 people.
The transaction is expected to support Sonoco’s strategy to focus and expand its core operations while seizing profitable opportunities through organic growth and strategic acquisitions.
Sonoco plans to maintain its investment-grade credit rating by financing the transaction with new debt and up to $500 million from equity issuance, including a $200 million investment from KPS.
The proceeds from divestitures and operational cash flow will help Sonoco reduce net leverage to below 3.0x within 24 months.
The Boards of Directors of both ...