Sonoco Products Company announced Wednesday that it has entered into an agreement to sell its Thermoformed and Flexibles Packaging business (TFP) to TOPPAN Holdings Inc. for approximately $1.8 billion on a cash-free and debt-free basis and subject to customary adjustments.

The transaction, which reflects the completion of the previously announced strategic review of Sonoco’s TFP business, is subject to customary closing conditions, including regulatory approvals, and is expected to close in the first half of 2025. Net proceeds from the transaction are expected to be used to repay existing debt.

“The decision to sell our TFP business accelerates our portfolio simplification strategy, streamlines our organizational structure, and enables more focused capital investments in our remaining industrial paper and consumer packaging businesses,” said Howard Coker, Sonoco’s President and Chief Executive Officer. “TFP is a great business with leadership positions in its served markets. . . . . We will work closely with TOPPAN to ensure a successful transition for our employees, customers, and suppliers and wish the entire team all the best in the future.”

TOPPAN’s Perspective

TOPPAN said in a statement that the acquisition is “highly complementary, combining the robust sales network, customer base, and solution development capabilities of Sonoco’s TFP business in North and South America with the technical expertise and manufacturing capabilities of TOPPAN Group’s global packaging business.”

“We are extremely pleased to have the opportunity to bring Sonoco’s TFP business to the TOPPAN Group. In order to accelerate our strategy to become a global leader in sustainable packaging solutions, we will employ the complementary strengths of both parties to drive growth, solve customers’ needs and create significant value for our shareholders,” said Hideharu Maro, Representative Director, President & CEO of TOPPAN Holdings. “This is an essential milestone in the TOPPAN Group’s global strategy to scale the sustainable packaging business.”