Sonoco completes business negotiations with Tegrant
The two packaging firms will be linking up thanks to a $550 million deal.
Sonoco has confirmed business negotiations have been completed with protective packaging firm Tegrant.
The agreement will see the former take over the latter for an all-cash deal of $550 million (£352 million).
Harris DeLoach, chairman and chief executive officer at Sonoco - which has over 300 operations in 34 countries - observed it represents the biggest ever deal in the history of the company.
"The addition of Tegrant and its family of businesses significantly advances Sonoco as a protective packaging solutions leader and greatly expands the products, services and capabilities we can offer our customers," he added.
Mr DeLoach observed the link-up will facilitate growth in both consumer and industrial sectors across the globe.
The areas of medical devices and pharmaceuticals will automatically become more open to Sonoco thanks to its partnering with Tegrant, the official stated.
Tegrant's sales for 2011 are expected to be $440 million, while Sonoco is targeting profits of $5 billion for 2012.
Posted by Ken Hayes
Source: Sonoco press release, October 10th