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Sonoco to acquire remaining interest in Conitex Sonoco

Staff Report //May 29, 2018//

Sonoco to acquire remaining interest in Conitex Sonoco

Staff Report //May 29, 2018//

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Hartsville-based global packaging company Sonoco will acquire the remaining 70% interest in the joint venture of Conitex Sonoco, a manufacturer of paper-based cones and tubes used in the textile industry, for approximately $133 million in cash.

The transaction is expected to close in the third quarter of 2018, Sonoco said in a news release.

The Conitex Sonoco joint venture was formed in 1998 between Texpack Inc., a provider of paperboard and paper-based packaging products based in Spain, and Sonoco’s former North America textile cone business. The venture recorded sales of $245 million in 2017 and produced more than 300,000 tons of uncoated recycled paperboard which was used to produce approximately 1.4 billion tubes and cones for the global spun yarn industry.

The company, which also produces adhesives, flexible intermediate bulk containers and corrugated pallets, has 13 manufacturing locations in 10 countries, including four paper mills.

“The Conitex Sonoco relationship has been very successful over the past 20 years, and we see even further opportunity to grow Sonoco’s existing global paper-based tube and core business through this combination, especially in faster-growing emerging markets in Asia, where we will be substantially increasing our manufacturing presence while more than doubling our current annual sales in the region,” Rob Tiede, Sonoco president and CEO, said in a news release.

Conitex Sonoco has 1,250 employees. COO Michel Schmidlin and members of his leadership team will remain with Sonoco.

When the transaction is completed, Conitex Sonoco’s financial results will be reported within Sonoco’s Paper/Industrial Converted Products segment.

 

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