Sonoco is divesting its ThermoSafe division and has signed a definitive agreement to sell it to Arsenal Capital Partners. The purchase price is up to USD 725 million.
According to Sonoco, the move completes its transformation into a global metal and fibre packaging company; the net proceeds will be used to repay debt. Completion is expected by the end of 2025, subject to regulatory review.
Sonoco will receive USD 650 million in cash at closing and up to USD 75 million in additional consideration if performance targets for calendar year 2025 are met. The company expects to use the proceeds to reduce its leverage ratio to approximately 3.5 times. Morgan Stanley acted as financial advisor to Sonoco; Freshfields acted as legal advisor to the seller, while Kirkland & Ellis advised Arsenal.
Details and categorisation
ThermoSafe is one of the leading providers of temperature-controlled packaging solutions for pharmaceuticals, biologics and vaccines. In 2024, the unit generated sales of more than USD 240 million with pro forma adjusted EBITDA of around USD 50 million and employs around 900 people in the Americas, EMEA and Asia. The portfolio includes bio-based isolation materials and reusable systems; in addition, the in-house ISC laboratory offers design, testing and validation services.
Outlook
The closing is subject to customary conditions, including regulatory approvals. Sonoco plans to use the net proceeds to repay existing debt and further strengthen its simplified two-segment structure.
Source: Sonoco
