Sonoco Products Company (NYSE: SON) shares reversed in price Monday. The Hartsville, South Carolina-based company, a global leader in high-value sustainable packaging, today announced it has signed a definitive agreement to sell its ThermoSafe business unit, which is one of the leading providers of temperature-assured packaging, to Arsenal Capital Partners, a leading private equity investment firm that specializes in building market-leading industrial growth and healthcare companies, for up to $725 million.
The purchase price consists of $650 million on a cash-free and debt-free basis payable at closing, and additional consideration of up to $75 million if certain performance measures for calendar year 2025 are met. The transaction is subject to customary closing conditions, including regulatory review, and is expected to be completed by the end of 2025. Net proceeds from the transaction are expected to be used to repay existing debt.
Based in Arlington Heights, IL, ThermoSafe is one of the leading global providers of temperature-controlled packaging solutions ensuring the safe and efficient transport of pharmaceuticals, biologics, vaccines and other temperature-sensitive products.
In 2024, the business generated over $240 million in sales and approximately $50 million in proforma adjusted EBITDA. ThermoSafe employs approximately 900 associates working in operations in the Americas, EMEA and Asia.
SON shares dipped 56 cents, or 1.2%, to $45.66
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