Sonoco Completes Sale of 55,000 Acres of Timberland to Manulife Investment Management

Rhea-AI Summary

Sonoco Products Company (NYSE: SON) has sold approximately 55,000 acres of timberlands in South Carolina for $72 million in cash to Manulife Investment Management. This strategic divestiture allows Sonoco to maximize shareholder value while ensuring sustainable management of the lands. CEO Howard Coker confirmed that the company now exclusively produces paper from recycled fibers, eliminating the need for natural tree fiber. In 2022, Sonoco reported net sales of about $7.3 billion and received recognition as a leader in sustainability in the packaging sector.

Positive

• Sale of 55,000 acres of timberlands for $72 million enhances shareholder value.
• Transition to exclusive use of recycled fibers for paper production aligns with sustainability goals.
• Recognition as a leader in sustainability boosts brand reputation and market position.

Negative

• None.

HARTSVILLE, S.C., March 30, 2023 (GLOBE NEWSWIRE) -- Sonoco Products Company (NYSE: SON), a diversified global packaging company recognized for its leadership in sustainability, today announced it has sold approximately 55,000 acres of timberlands in South Carolina for $72 million in cash to Manulife Investment Management (Manulife IM) on behalf of its clients. Manulife IM is a timberland and agricultural investment manager which sustainably manages approximately 6 million acres around the globe. 

Sonoco Chief Executive Officer Howard Coker said, “Today, Sonoco produces paper exclusively from recycled fibers and no longer requires natural tree fiber for production. Through this sale, we are pleased to have the opportunity to maximize value for our shareholders while also ensuring that the property goes to a buyer that puts sustainable management at the forefront of its natural capital investment strategy. Manulife Investment Management has extensive experience with these types of sustainable transactions, and we feel confident that these lands will continue to be held in good stewardship.”

About Sonoco 
Founded in 1899, Sonoco (NYSE:SON) is a global provider of packaging products. With net sales of approximately $7.3 billion in 2022, the Company has approximately 22,000 employees working in more than 300 operations around the world, serving some of the world's best-known brands. With our corporate purpose of Better Packaging. Better Life., Sonoco is committed to creating sustainable products, and a better world, for our customers, employees and communities. 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 on the Company, visit our website at www.sonoco.com.

About Manulife Investment Management
Manulife Investment Management is the global brand for the global wealth and asset management segment of Manulife Financial Corporation. We draw on more than a century of financial stewardship and the full resources of our parent company to serve individuals, institutions, and retirement plan members worldwide. Headquartered in Toronto, our extensive capabilities in public and private markets are strengthened by an investment footprint that spans 19 geographies. We complement these capabilities by providing access to a network of unaffiliated asset managers from around the world. We’re committed to investing responsibly across our businesses. We develop innovative global frameworks for sustainable investing, collaboratively engage with companies in our securities portfolios, and maintain a high standard of stewardship where we own and operate assets, and we believe in supporting financial well-being through our workplace retirement plans. Today, plan sponsors around the world rely on our retirement plan administration and investment expertise to help their employees plan for, save for, and live a better retirement. Not all offerings are available in all jurisdictions. For additional information, please visit manulifeim.com.

Contact:
Lisa Weeks
+843-383-7524
lisa.weeks@sonoco.com

FAQ

What did Sonoco Products Company announce on March 30, 2023?

On March 30, 2023, Sonoco Products Company announced the sale of approximately 55,000 acres of timberlands in South Carolina for $72 million in cash.

Who purchased the timberlands from Sonoco Products Company?

The timberlands were purchased by Manulife Investment Management on behalf of its clients.

How much cash did Sonoco receive from the timberland sale?

Sonoco received $72 million in cash from the sale of the timberlands.

How does the timberland sale benefit Sonoco's shareholders?

The sale allows Sonoco to maximize value for its shareholders while supporting sustainable management of the lands.

What significant change has Sonoco made in its paper production?

Sonoco now produces paper exclusively from recycled fibers, eliminating the need for natural tree fiber.