Sonoco finalises sale of temperature logistics division

With its withdrawal from cold chain logistics, Sonoco says it is sharpening its profile as a supplier of metal and fibre packaging.
Picture: Sonoco

Sonoco has finalised the sale of its temperature logistics division ThermoSafe to the private equity firm Arsenal Capital Partners. The purchase price is USD 650 million at closing, plus a performance-based payment of up to USD 75 million for 2025. The net proceeds will be used to repay debt.

Sonoco CEO Howard Coker sees the transaction as a key step in the portfolio streamlining process: The company is thus focusing on two global core business segments in metal and fibre packaging for consumer and industrial customers. Pro forma, the expected net proceeds - excluding possible additional compensation - should reduce the net debt ratio.

The total price consists of USD 650 million „cash-free, debt-free“ at closing and up to USD 75 million in additional compensation if defined performance indicators are achieved. Sonoco plans to use the funds to repay existing liabilities.

Classification: ThermoSafe and Arsenal

ThermoSafe provides temperature safety solutions for the transport of pharmaceuticals, biologics and vaccines - from parcel shippers to reusable bulk systems - including design, testing and validation services through ISC Labs.

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Effects on the packaging industry

With the Exit from cold chain logistics Sonoco is sharpening its profile as a provider of metal and fibre packaging. For market participants, this means a clearer distribution of roles: while private equity owners such as Arsenal are expanding dedicated healthcare platforms, Sonoco is focussing on scalable, material-based packaging solutions along consumer and industrial markets.

Source: Sonoco