Sonoco Acquires Remaining Interest in Brazil Flexible Packaging Joint Venture

Rhea-AI Summary

Sonoco (NYSE: SON) has successfully acquired the remaining one-third interest in its Brazilian joint venture, Sonoco do Brasil Participacoes, Ltda, from private investors. This acquisition marks a significant step since Sonoco initially acquired a two-thirds stake in 2015. The joint venture, which generated approximately $34 million in sales in 2021, is a prominent flexible packaging supplier in Brazil, servicing major multinational clients in various industries, including confectionery and pharmaceuticals. Sonoco aims to enhance its product offerings and market presence in the growing flexible packaging sector.

Positive

• Full ownership of Sonoco do Brasil boosts operational control and market presence.
• The joint venture had revenues of approximately $34 million in 2021, indicating strong market demand.
• Strategically positions Sonoco as a leading flexible packaging provider in Brazil.

Negative

• None.

HARTSVILLE, S.C., April 01, 2022 (GLOBE NEWSWIRE) -- Sonoco (NYSE: SON), one of the largest global sustainable packaging companies, today announced it has acquired the remaining one-third interest in Sonoco do Brasil Participacoes, Ltda, a Brazil-based flexible packaging joint venture, from private investors.

Sonoco acquired its two-third interest in the joint venture in 2015 from Graffo Paranaense de Embalagens S/A, a closely held flexible packaging operation located in Pinhais, near Curitiba, Brazil. The joint venture had sales of approximately $34 million in 2021 and is a top-tier flexible packaging supplier to several global multinational consumer packaging goods companies serving confectionery, dairy, pharmaceutical and industrial markets in Brazil. The joint venture operates high-quality rotogravure printing and sophisticated lamination operations and is one of the largest converters of foil-based flexible packaging in Brazil.

About Sonoco
Founded in 1899, Sonoco (NYSE: SON) is a global provider of consumer, industrial, healthcare and protective packaging. With net sales of approximately $5.6 billion in 2021, the Company has 20,500 employees working in approximately 300 operations in 32 countries, serving some of the world’s best-known brands in some 85 nations. Sonoco is committed to creating sustainable products, services and programs for our customers, employees and communities that support our corporate purpose of Better Packaging. Better Life. The Company ranked first in the Packaging sector on Fortune’s World’s Most Admired Companies for 2022 as well as being included in Barron’s 100 Most Sustainable Companies for the fourth consecutive year. For more information, visit www.sonoco.com.

FAQ

What was the purpose of Sonoco's acquisition of Sonoco do Brasil?

The acquisition aims to gain full control over its Brazilian flexible packaging operations to enhance market presence and operational efficiencies.

How much revenue did Sonoco do Brasil generate in 2021?

Sonoco do Brasil generated approximately $34 million in sales in 2021.

What industries does Sonoco do Brasil serve?

Sonoco do Brasil serves various industries, including confectionery, dairy, pharmaceuticals, and industrial markets.

What percentage stake did Sonoco acquire in Sonoco do Brasil?

Sonoco acquired the remaining one-third interest, obtaining a full ownership stake in the joint venture.