Toppan Holdings Inc. is acquiring Sonoco’s Thermoformed & Flexible Packaging (TFP) business with the intent to expand its sustainable packaging business into the Americas.
Toppan’s packaging business seeks to “Change the World through Packaging Innovation”. In its words, it aims 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.”
Meanwhile, Sonoco’s TFP business caters to the food, retail, and medical verticals sectors, offering complex packaging for such solutions as fresh foods, prepared meals, snacks, pet food, condiments, coffee, and healthcare products. In 2023, it was believed to have a revenue of around $1.3 billion (€1,248,253,645.60) on a pro forma standalone basis.
Its acquisition is set to apply Toppan’s technical expertise and manufacturing capabilities to the ‘robust’ sales network, customer base, and solution development capabilities of Sonoco’s thermoformed and flexible packaging in North and South America.
Subject to customary requirements, Toppan will pay around $.18 billion (€1,727,802,000) on a cash-free and debt-free basis. The transaction is subject to customary closing conditions, which includes regulatory approvals, and is set to close within the first half of 2025.
Houlihan Lokey and Goldman Sachs & Co. will act as lead financial advisors. Morrison & Foerster and Mitsubishi UFJ Morgan Stanley Securities Co. will act as Toppan’s legal and financial advisor, respectively; Sonoco will receive legal advice from Freshfields LLP and financial advice from Goldman Sachs & Co. and RBC Capital Markets.
“We are extremely pleased to have the opportunity to bring Sonoco’s TFP business to the TOPPAN Group,” said Hideharu Maro, representative director, president and CEO of TOPPAN Holdings.
“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.
“This is an essential milestone in the TOPPAN Group’s global strategy to scale the sustainable packaging business.”
In similar news, Reconomy wants to accelerate its growth in North America by acquiring the US-based waste and recycling management and consulting firm Lincoln Waste Solutions. In turn, it plans to expand its international footprint and help more customers manage waste effectively.
Mondi has shared its own plans to acquire Schumacher Packaging’s corrugated converting and solid board operations in the UK, Germany, and Benelux. It aims to expand its corrugated footprint in Western Europe and build upon its portfolio with fibre-based products for e-commerce and FMCG.
In other news, the Science Based Targets initiative recently provided net-zero target validation for the Toppan Group’s greenhouse gas reduction targets across its entire value chain. These targets include a long-term target of net zero Scope 1, 2 and 3 emissions by 2050, and reducing Scope 1, 2 and 3 GHG emissions by 54.6% compared to the fiscal 2017 level by 2030.
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