Sonoco concludes $725m divestment of ThermoSafe unit

Core Viewpoint - Sonoco Products Company has successfully divested its ThermoSafe business unit to Arsenal Capital Partners for a total of $725 million, marking a significant step in its portfolio transformation strategy [1][2]. Group 1: Transaction Details - The divestment includes an initial payment of $650 million on a cash-free, debt-free basis, with an additional contingent payment of up to $75 million based on performance targets for 2025 [1]. - The expected net proceeds from the divestment are projected to reduce Sonoco's net leverage ratio to approximately 3.4 times [2]. Group 2: Business Overview - ThermoSafe, based in Arlington Heights, Illinois, specializes in temperature assurance technologies for transporting pharmaceuticals, biologics, vaccines, and other healthcare products [3]. - The product range includes parcel shippers, bulk solutions, and reusable options designed to maintain various temperature conditions, along with customized design and testing services [4]. Group 3: Financial Performance - In 2024, ThermoSafe reported sales exceeding $240 million and pro forma adjusted EBITDA of $50 million [4]. Group 4: Advisory Information - Morgan Stanley & Co. acted as financial advisor to Sonoco, while Freshfields provided legal counsel. Arsenal Capital Partners was advised by Raymond James and represented legally by Kirkland & Ellis [5].