HARTSVILLE, SC. — Sonoco Products Company, a global supplier of high-value sustainable packaging, announced June 24 that it has entered an agreement to acquire Eviosys, a European packaging producer, for approximately $3.9 billion. Sonoco will acquire Eviosys from KPS Capital Partners, LP.
Eviosys specializes in metal packaging, producing food and pet food cans and ends, aerosol cans, metal closures and promotional packaging for various consumer brands. According to the company, it has the largest metal food can manufacturing footprint in the EMEA (Europe, the Middle East and Africa) region, operating 44 manufacturing facilities throughout 17 countries.
Sonoco estimates that Eviosys’ 2024 revenue will hover around $2.5 billion with an adjusted EBITDA of around $430 million. According to Eviosys, its commercial and operational success has allowed it to increase its EBITDA by 50% since 2021.
According to Sonoco, the acquisition of Eviosys accelerates its strategy to scale its core metal packaging business. Following the completed transaction, Sonoco will be the leading global metal food can and aerosol packaging manufacturer, according to the company.
“The acquisition of Eviosys establishes our global leadership in metal food can and aerosol packaging, marking an exciting milestone in our strategy to scale our core strategic metal packaging platform and position Sonoco for long-term value creation,” said Howard Coker, president and chief executive officer of Sonoco. “Eviosys brings extensive global reach and an attractive, growing customer base that perfectly complements our existing metal packaging offering.”
Sonoco will integrate Eviosys’ metal packaging capabilities into its metal can business. Rodger Fuller, chief operating officer of Sonoco, will lead the integration, focusing on customer and supplier relations, employee continuity, operations and synergies.
“For over 200 years, we have provided best-in-class metal packaging that enhances the appeal of our customers’ brands,” said Tomas Lopez, chief executive officer of Eviosys. “By combining with Sonoco, we will work to bring our high quality, sustainable and innovative packaging solutions to new and existing customers around the globe.
“Our companies share a strong commitment to providing the highest levels of customer service, safety for our employees, and operating efficiencies, and I look forward to joining the incredibly talented team at Sonoco as we work to deliver the benefits of this acquisition to all our stakeholders,” Lopez added.
Through the acquisition, Sonoco will provide Eviosys with access to its existing position in the US market, ultimately expanding Sonoco’s total addressable market in metal packaging to $25 billion throughout the globe. Sonoco also plans to leverage Eviosys’ portfolio to more effectively serve customers while also accelerating organic growth.
The companies’ combined manufacturing footprint is also expected to allow Sonoco to advance its operational efficiencies. According to the company, its has identified more than $100 million worth of potential synergies from sourcing optimization, supply chain improvements, material procurement savings, manufacturing optimization and streamlining of SG&A expenses, most of which the company expects to realize within the first year of ownership of Eviosys.
“Together with the talented team at Eviosys, we are focused on unlocking new opportunities in attractive end-markets, providing our customers with a stronger value proposition and generating strong returns for our shareholders,” Coker said.
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