Sonoco, a large diversified global packaging company, has signed a definitive agreement to acquire Weidenhammer Packaging Group, a leading provider of composite cans along with composite drums and rigid plastic containers, for €286 million, or approximately US$383 million, in cash.
Weidenhammer Packaging, headquartered in Hockenheim, Germany, has approximately 1,100 employees and operates 13 production facilities, including five in Germany, along with individual plants in Belgium, France, Greece, The Netherlands, United Kingdom, United States, Chile and Russia. In addition to producing composite cans, drums and luxury tubes, Weidenhammer produces unique rigid plastic containers using state-of-the-art thin-walled injection molding technology with modern in-mold labeling. Markets served by the company include processed foods, powdered beverages, tobacco, confectionery, personal care, pet food, pharmaceuticals and home and garden products.
According to M. Jack Sanders, Sonoco president and CEO, the acquisition of family-owned Weidenhammer Packaging Group will make Sonoco global leader in rigid paper packaging and is expected to increase Sonoco's global consumer-related packaging and services business to approximately US$2.8 billion in annual sales or approximately 53% of the company's combined revenue of approximately US$5.3 billion.
Commenting on the acquisition, Sanders said, “Combining Weidenhammer's state-of-the-art production and technological capability places Sonoco in a leading position to provide its global consumer product customers with unparalleled packaging expertise throughout North America and Europe, and creates a strong presence in the emerging markets of Southeast Asia, China, Eastern Europe and South America."
According to Ralf Weidenhammer, “Sonoco and Weidenhammer bring 175 years of combined consumer packaging innovation and expertise to our combined customers. After almost 60 years of successful business operations, we are convinced that the merger with Sonoco will open up new opportunities for our business, our customers and partners, as well as to our employees."
Sonoco has two Canadian paper mills, in Brantford and Trenton, Ont.