Toppan Holdings has entered into an agreement with Sonoco Products Company, a global name in high-value sustainable packaging, to acquire Sonoco’s thermoformed & flexible packaging business for approximately $1.8 billion on a cash-free and debt-free basis and subject to customary adjustments.
This acquisition is highly complementary, combining the robust sales network, customer base, and solution development capabilities of Sonoco’s thermoformed & flexible packaging business in North and South America with the technical expertise and manufacturing capabilities of Toppan Group’s global packaging business.
Sonoco’s thermoformed and flexible packaging business serves a wide range of customers in food, retail, and medical verticals. It provides a variety of complex packaging to value-added categories including snacks, condiments, healthcare, prepared meals, fresh products, coffee, and pet food. On a pro forma standalone basis, thermoformed & flexible packaging had revenue of approximately $1.3 billion in 2023.
“We are extremely pleased to have the opportunity to bring Sonoco’s TFP business to the Toppan Group. In order to accelerate our strategy to become a global leader in sustainable packaging solutions, we will employ the complementary strengths of both parties to drive growth, solve customers’ needs and create significant value for our shareholders,” said Hideharu Maro, representative director, president & CEO of Toppan Holdings. “This is an essential milestone in the Toppan Group’s global strategy to scale the sustainable packaging business.”
This transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close in the first half of 2025.
The Toppan Group’s strategy
The Toppan Group aims to be a leading solution provider addressing global issues. Under the current medium-term-strategy, the Toppan Group has been transforming its portfolio, and one of its key strategies is to drive sustainable packaging solutions at global scale.
The vision of the Toppan Group’s packaging business is ‘Change the World through Packaging Innovation,’ and its mission is to ‘Foster a society focused on well-being and sustainability, while safeguarding our planet for future generations, through the continuous development of innovative packaging solutions that explore cutting-edge materials and technologies.’
The Toppan Group has been driving innovation in the development of sustainable packaging solutions by establishing a global supply chain from film manufacturing to packaging manufacturing and optimizing cost to meet brand owners’ needs locally and globally.
Advisors
Houlihan Lokey is acting as lead financial advisor and Morrison & Foerster is acting as legal advisor to Toppan. Mitsubishi UFJ Morgan Stanley Securities is also acting as financial advisor to Toppan.
Goldman Sachs is acting as lead financial advisor and Freshfields is acting as legal advisor to Sonoco. RBC Capital Markets is also acting as financial advisor to Sonoco.
Established in Tokyo in 1900, the Toppan Group is a leading and diversified global provider delivering sustainable, integrated solutions in fields including printing, communications, security, packaging, décor materials, electronics, and digital transformation.
Sonoco’s thermoformed & flexible packaging business has a strong customer base and manufacturing footprint in North America and South America with approximately 4,500 employees in 22 manufacturing plants, over 700 patents, and design capability across 10 countries.
