Sonoco Products Company announced the completion of the sale of its Thermoformed and Flexibles Packaging (TFP) business to TOPPAN Holdings Inc. The transaction was finalized for approximately $1.8 billion on a cash-free and debt-free basis.
The company will utilize the approximately $1.56 billion in after-tax cash proceeds from the sale to significantly reduce its existing debt and strengthen its balance sheet. This move is a critical step in Sonoco's strategy to transform into a simpler, stronger, and more sustainable company.
CEO Howard Coker emphasized that Sonoco is now moving forward with a focused portfolio, enabling further investment in its growing sustainable metal and fiber consumer and industrial packaging businesses. This divestiture streamlines operations and enhances the company's financial position.
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