Paper recycler and packaging maker Sonoco has bought Tegrant Corp. in a move that expands Sonoco’s protective packaging business.
Sonoco signed a definitive agreement to acquire Tegrant from Metalmark Capital for $550 million. Tegrant, based in DeKalb, Ill., providesengineered protective, temperature-assured and retail security packaging solutions, Sonoco said in a news release. It’s the largest acquisition in the company’s history and will make Sonoco a leader in multimaterial protective packaging, the firm said.
Tegrant expects to post 2011 sales of approximately $440 million. When combined, Sonoco projects to generate sales of about $5 billion in 2012.
Tegrant operates three strategic business units. Protexic Brands, the largest business unit, makes molded expanded foam. The ThermoSafe Brands operation provides temperature-assured solutions, primarily used in packaging temperature-sensitive pharmaceuticals and food. Tegrant’s Alloyd Brands business segment makes and designs high-visibility packaging, printed products and blister packaging machines for retail and medical markets.
Tegrant operates more than 30 manufacturing, design and testing facilities in the United States, Mexico and Ireland and employs more than 2,000 employees.
“Sonoco's combined protective packaging businesses will represent approximately 11 percent of Sonoco's projected 2012 sales and further enhance our ability to grow in both consumer and industrial markets globally,” said Harris DeLoach Jr., Sonoco chairman and chief executive officer.
DeLoach said that Tegrant’s president and chief executive officer, Ron Leach, will stay with Sonoco and continue leading Tegrant’s businesses.