American Forest & Paper Association Releases September 2017 Boxboard Report

Sonoco Products Company, a global leader in high-value sustainable packaging, announced it has entered into an agreement to acquire Eviosys, Europe’s leading food cans, ends and closures manufacturer, from KPS Capital Partners, LP for approximately $3.9 billion. The Transaction accelerates Sonoco’s strategy to focus on and scale its core businesses and invest in high return opportunities, both organically and inorganically. Following the Transaction, Sonoco will be the leading metal food can and aerosol packaging manufacturer globally. Both Sonoco’s metal business and Eviosys have meaningful commercial momentum and the Transaction facilitates Sonoco’s ability to partner with customers and lead with innovation and sustainability. Eviosys is a leading global supplier of metal packaging, producing food cans and ends, aerosol cans, metal closures and promotional packaging to preserve the products of hundreds of consumer brands. Eviosys has the largest metal food can manufacturing footprint in the EMEA region, with approximately 6,300 employees in 44 manufacturing facilities across 17 countries. Sonoco estimates Eviosys’s 2024 revenues will be approximately $2.5 billion and its 2024 adjusted EBITDA will be approximately $430 million. Eviosys has meaningful commercial and operational momentum and has increased EBITDA by approximately 50% since 2021. Sonoco expects to achieve over $100 million of synergies from the integration of Eviosys with Sonoco’s complementary metal can business. Rodger Fuller, Sonoco’s Chief Operating Officer, will lead the integration with a focus on customer and supplier relationships, employee continuity, operational excellence, and synergy realization, while combining the best of Sonoco’s culture with the rich history and heritage of Eviosys.

The net sales increase of $161 million from the prior year quarter was primarily attributed to acquisition net sales of $106 million, selling price increases of $59 million due to the pass through of higher resin prices, and a $34 million favorable impact from foreign currency changes, partially offset by a 2% base volume decline. The operating income increase of $13 million from the prior year quarter was primarily attributed to acquisition operating income of $20 million, a $13 million decrease in selling, general and administrative expense due to synergies and cost reductions, a $7 million decrease in depreciation and amortization, and a $5 million favorable impact from foreign currency changes, partially offset by a $22 million negative impact from under recovery of higher cost of goods sold, and a $7 million negative impact from lower base volumes, and a $3 million increase in business integration expenses. Click Read More below for additional information.

UPM Specialty Papers and Orkla Suomi are piloting a new paper wrapper for Panda Milk chocolate. During a six-month pilot period, the new wrappers replace traditionally used PP-plastic wrappers. Milk chocolate bars in new packages are now available in stores across Finland. “At Orkla Suomi, we want to make everyday life better with local brands that bring joy and make sustainable choices easier. Our products are a combination of tradition, innovation, and sustainability. A great example of our ongoing efforts to replace fossil-based materials with renewable alternatives is the new paper-based chocolate tablet packaging, developed in collaboration with UPM and printing house Walki Westpak. We will pilot this paper-based packaging with Panda Milk Chocolate in spring 2025 to gather insights and experiences from the new solution,” says Arja Laitinen, Packaging Developer at Orkla Snacks. The new type of wrapper for Panda Milk Chocolate is based on UPM AsendoTM Pro 75 g/m2 barrier paper, which has suitable grease barrier properties for Panda milk chocolate.