The future of sustainable packaging: FlexPaper and PrimePaper

Sonoco Products Company announced it has entered into an agreement to sell its Thermoformed and Flexibles Packaging business 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.

Kevin Kwilinski, Berry’s CEO said, “Our strong financial results in the quarter were consistent with our expectations and our teams executed very well. Notably, we achieved a 2% increase in overall organic volumes, with each four operating segments delivering low-single digit volume growth. At the same time, we delivered a solid increase in our operating EBITDA margins, which were 110 basis points higher than the previous year. We place a high value on honoring our commitments and excellence in execution. This quarter, I’d like to emphasize our team’s outstanding performance in achieving volume and earnings growth, as well as our progression in reducing our leverage and optimizing our portfolio. We are confident in the strength of our underlying businesses, our customer value proposition, and our execution capabilities. We expect business momentum to continue as we demonstrated in the June quarter, including delivering, low-single digit volume growth in the fiscal fourth quarter and exiting fiscal 2024 at or below our 3.5x leverage target. I am excited by the attainable growth and operational excellence opportunities ahead. We’re focusing on three key efforts: optimizing our portfolio to accelerate growth and deleveraging, implementing our lean transformation, and driving growth by enhancing our commercial excellence.”

Berry Global Group, Inc. earned an “A” environmental, social, and governance (ESG) rating from international ratings agency MSCI for its progress managing ESG risks and opportunities, including improvements in Carbon Emissions, Labor Management, and Packaging Material and Waste. “We are honored to receive such high recognition from MSCI for our continued efforts to increase transparency and prioritize key environmental and social issues across our global business, while strengthening Berry’s resilience to long-term ESG risks,” said Tom Salmon, CEO of Berry Global. “This improved 'A' rating reflects our ongoing investments in our workforce as well as our commitment to reducing the environmental impact of packaging and achieving net-zero emissions by 2050.”