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Sonoco Completes Sale of ThermoSafe Unit to Arsenal Capital Partners

  • Sonoco completed the sale of its ThermoSafe business unit to Arsenal Capital Partners for a total purchase price of up to $725 million.
  • The deal structure includes $650 million payable at closing on a cash-free & debt-free basis, with up to $75 million in additional consideration contingent on 2025 performance measures.
  • Net proceeds from the transaction will be used to repay existing debt.
  • Howard Coker, Sonoco's CEO, stated the sale substantially concludes the company's portfolio transformation into two core segments focused on metal & paper packaging.
  • Proforma analysis indicates the transaction will reduce Sonoco's net leverage ratio to approximately 3.4x.
  • Morgan Stanley & Co. LLC served as financial advisor to Sonoco, while Raymond James acted as lead financial advisor to Arsenal.
  • Freshfields LLP represented Sonoco legally, & Kirkland & Ellis LLP represented Arsenal.
  • ThermoSafe is a global leader in temperature assurance technologies for the transport of pharmaceuticals & healthcare products.
  • Post-transaction, Sonoco operates as a global leader in sustainable metal & fiber packaging with approximately 23,400 employees across 40 countries.