Sonoco (NYSE: SON), one of the world's largest diversified packaging companies, today announced the acquisition of Can Packaging. Can Packaging is a privately held company based in Habsheim, France, specializing in the design and manufacture of sustainable paper packaging and related production equipment. The total purchase price amounts to approximately 41.7 million euros, or approximately 49 million US dollars.
Can Packaging was founded in 1989 by George Sireix and today operates two production facilities for cardboard cans in France as well as a research and development center. Here Can Packaging develops and builds patented packaging machines and patented sealing systems. The company plans a turnover of 23 million euros (approx. 27 million US dollars) for 2020. Can Packaging employs around 60 people and supplies a large number of large, well-known food manufacturers throughout Europe with its sustainable paper packaging.
"We are very pleased that Can Packaging will expand Sonoco's growing portfolio of sustainable packaging solutions in the future," said Howard Coker, President and CEO of Sonoco. "This strategic acquisition brings us numerous innovations, including a patented technology for the production of fully recyclable, mainly paper-based packaging. These packages have excellent technical properties and can be produced in round, square, rectangular, oval, oblong or triangular formats. These innovations perfectly complement our global portfolio of rigid carton packaging and not only expand our range of sustainable packaging solutions, but also add to the EnviroSense™ products we offer."
Sean Cairns, Division Vice President and General Manager Sonoco Consumer Products Europe, added: "Can Packaging's centre of innovation, patented products and proprietary manufacturing techniques allow us to build on Sonoco's strong materials science and engineering capabilities. This will enable us to develop more recyclable mono-material paper packaging that offers our European customers a wide range of barrier properties for their food products. Can Packaging's unique and highly cost-effective machine technology will also help us to expand our consumer goods packaging business in growth markets.
George Sireix will continue to work as a consultant for Sonoco. His son, Guillaume, who currently heads the technology and engineering division at Can Packaging, will continue to be the innovation leader for the company's European consumer goods division. Operational processes and customer relationships at Can Packaging will remain unchanged.
