Sonoco will add 13 production facilities in nine countries to its operations by acquiring German Weidenhammer Packaging Group. The acquisition will create a global leader in rigid paper packaging, says the company.
Global packaging company Sonoco and German Weidenhammer Packaging Group will merge. Sonoco reported it had signed an agreement to acquire the German group for €286m in cash. The acquisition is subject to governmental regulatory review and is expected to close in the fourth quarter of 2014.
Weidenhammer Packaging is described as Europe's leading provider of composite cans, composite drums and rigid plastic containers. The company has approximately 1,100 employees and operates 13 production facilities in Germany, Belgium, France, Greece, Russia, The Netherlands, the UK, the US and Chile. According to Sonoco, the takeover will create a global leader in rigid paper packaging.
Sonoco's president and CEO M. Jack Sanders said the acquisition was expected to increase the company's global consumer-related and services business to around $2.8bn in annual sales, i.e. 53% of the company's combined revenue of approximately $5.3bn. Weidenhammer is expected to generate sales of €244m in 2014.