Platinum Equity and Ball Corporation Complete Sale of Ball Metalpack to Sonoco for $1.35 Billion

Rhea-AI Summary

Platinum Equity has finalized the sale of Ball Metalpack to Sonoco (NYSE: SON) for approximately $1.35 billion. This marks the end of a three-year transformation program that established Ball Metalpack as a standalone entity and enhanced its operations. Since its formation in 2018, the company has invested about $100 million in advanced manufacturing capabilities. With this acquisition, Sonoco aims to expand its packaging portfolio, leveraging Ball Metalpack's expertise in sustainable steel containers.

Positive

• Completed acquisition of Ball Metalpack, expanding Sonoco's packaging portfolio.
• Investment of approximately $100 million in state-of-the-art manufacturing infrastructure enhances operational capabilities.

Negative

• None.

LOS ANGELES and WESTMINSTER, Colo., Jan. 27, 2022 /PRNewswire/ -- Platinum Equity announced today that the sale of Ball Metalpack to Sonoco (NYSE: SON) in a transaction valued at approximately $1.35 billion has been completed.

Ball Metalpack, based in Broomfield, Colorado, manufactures sustainable steel containers for aerosol products, food, household consumables, pet food, nutritional and other products in the United States. It was formed as a joint venture between Platinum Equity and Ball Corporation in 2018. Platinum Equity owned 51 percent of the business and Ball Corporation owned 49 percent.

The sale is the culmination of a comprehensive three-year transformation program through which Platinum Equity and Ball established Ball Metalpack as a standalone enterprise, then drove a broad range of operational improvements throughout the business. Priorities for the transformation program included footprint optimization, new product development, expansion of the company's capabilities, and investments in growth and operational excellence. Ball Metalpack has invested approximately $100 million in state-of-the-art manufacturing infrastructure since 2018.

"We are proud of our partnership with Ball Corporation and everything we accomplished working together over the past three years," said Platinum Equity Partner Louis Samson. "By joining forces we were able to deliver on behalf of the company and its shareholders. This investment is another successful story of aligning our interests with those of one of the world's leading corporations and delivering value for both of us."

Ball joins Caterpillar (Neovia Logistics), Emerson (Artesyn Technologies and Vertiv), and Telstra (Sensis) on the list of companies that have participated in equity upside along with Platinum Equity.

"This investment brought together Platinum's decades of experience in corporate carve outs with our well-defined playbook for creating value in the packaging space. We will continue putting both to work in pursuit of new opportunities," said Platinum Equity Managing Director Delara Zarrabi. "We are grateful for everything Jim Peterson and the Ball Metalpack team have done and we believe Sonoco is the ideal home going forward."

Goldman Sachs served as financial advisor to Ball Metalpack on the sale to Sonoco. Latham & Watkins LLP served as Platinum Equity's legal counsel on the transaction. Skadden, Arps, Slate, Meagher & Flom LLP served as legal counsel to Ball Corporation.

About Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm with more than $25 billion of assets under management and a portfolio of approximately 50 operating companies that serve customers around the world. The firm is currently investing from Platinum Equity Capital Partners V, a $10 billion global buyout fund, and Platinum Equity Small Cap Fund, a $1.5 billion buyout fund focused on investment opportunities in the lower middle market. Platinum Equity specializes in mergers, acquisitions and operations – a trademarked strategy it calls M&A&O^® – acquiring and operating companies in a broad range of business markets, including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, telecommunications and other industries. Over the past 25 years Platinum Equity has completed more than 300 acquisitions.

Media Contacts:

Dan Whelan
Platinum Equity
(310) 282-9202
dwhelan@platinumequity.com

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SOURCE Platinum Equity

FAQ

What is the significance of Sonoco's acquisition of Ball Metalpack?

The acquisition enhances Sonoco's packaging portfolio and leverages Ball Metalpack's expertise in sustainable steel containers.

When was the sale of Ball Metalpack to Sonoco completed?

The sale was completed on January 27, 2022.

How much did Sonoco pay for Ball Metalpack?

Sonoco acquired Ball Metalpack for approximately $1.35 billion.

What transformations did Ball Metalpack undergo before the sale?

Ball Metalpack underwent a three-year transformation program that included operational improvements and investments in manufacturing capabilities.

Who advised on the acquisition of Ball Metalpack by Sonoco?

Goldman Sachs served as the financial advisor to Ball Metalpack during the sale.