Sonoco to Sell Temperature-Assured Packaging Business to Arsenal Capital Partners

Core Viewpoint - Sonoco Products Company has signed a definitive agreement to sell its ThermoSafe business unit to Arsenal Capital Partners for a total purchase price of up to $725 million, marking a significant step in Sonoco's portfolio transformation into a global leader in metal and fiber packaging [1][3]. Group 1: Transaction Details - The purchase price includes $650 million on a cash-free and debt-free basis payable at closing, with an additional consideration of up to $75 million based on performance measures for 2025 [1]. - The transaction is expected to be completed by the end of 2025, subject to customary closing conditions including regulatory review [1]. - Net proceeds from the sale are anticipated to be used to repay existing debt, which will further reduce Sonoco's net leverage ratio to approximately 3.5x [3]. Group 2: ThermoSafe Overview - ThermoSafe is a leading global provider of temperature-controlled packaging solutions, generating over $240 million in sales and approximately $50 million in proforma adjusted EBITDA in 2024 [2]. - The business offers a wide range of products featuring advanced technology, including bio-based insulation materials and reusable technologies, catering to refrigerated, frozen, or controlled room temperature applications [2]. - ThermoSafe employs around 900 associates across operations in the Americas, EMEA, and Asia [2]. Group 3: Strategic Implications - The sale of ThermoSafe is part of Sonoco's strategy to streamline operations from a diversified portfolio into two core global business segments, enhancing focus on sustainable growth and value creation for customers [3]. - Sonoco's President and CEO highlighted the successful growth of ThermoSafe, noting that revenues have more than doubled since 2012, alongside significant improvements in technology and product offerings [3]. Group 4: Company Background - Sonoco, founded in 1899, is a global leader in sustainable metal and fiber packaging, operating in 40 countries with approximately 23,400 employees [8]. - The company has been recognized as one of America's Most Admired and Responsible Companies and is listed among America's Climate Leaders [8]. Group 5: Arsenal Capital Partners Overview - Arsenal Capital Partners is a private equity firm specializing in building market-leading industrial growth and healthcare companies, having raised over $10 billion since its inception in 2000 [9]. - The firm focuses on partnering with management teams to develop strategically important companies with leading market positions and high growth potential [9].