Sonoco, one of the largest diversified global packaging companies, has it has completed the acquisition of Peninsula Packaging Company, a leading manufacturer of thermoformed packaging for fresh fruit and vegetables found in the fast-growing perimeter of retail supermarkets. The company agreed the approximately USD 230 million transaction with Odyssey Investment Partners in February 2017.
The company financed the transaction with a combination of cash and a USD 150 million three-year term loan.
Peninsula is a leading manufacturer of thermoformed packaging for fresh fruit and vegetables found in the fast-growing perimeter of retail supermarkets. In 2016 the company had proforma sales of approximately USD 190 million. It operates five manufacturing facilities: four in the US and one in Mexico. The majority of its business is focused on packaging for a wide range of whole fresh fruits, pre-cut fruits and produce and prepared salad mixes, as well as baked goods. Peninsula’s customer base includes most of the leading household names for fresh fruits and vegetables found at retail. Peninsula’s financial results will be added to Sonoco’s Consumer Packaging segment and the business will operate as the Peninsula brand of thermoformed packaging products within Sonoco Plastics division’s global operations.
Rob Tiede, Sonoco Executive Vice President and Chief Operating Officer, commented:
“We are extremely pleased to have Peninsula joining the Sonoco family of leading consumer packaging products. Peninsula significantly expands our thermoforming packaging capabilities and we now occupy a strong packaging position serving the perimeter of supermarkets in fresh food products, combined with our existing offerings in the center of the store, including those serving a range of frozen and shelf-stable foods.
Combining Peninsula’s product lines with Sonoco’s packaging capabilities positions us extremely well to capture new growth in the rapidly expanding fresh and natural category, while greatly accelerating and enhancing our ability to offer our customers the most diverse consumer packaging formats and solutions in the industry.”
Odyssey Investment Partners is a leading middle-market private equity firm with a 20-year history of partnering with management teams and investing in North American companies.
The company is a global provider of a variety of consumer packaging, industrial products, protective packaging and packaging supply chain services. With annualized net sales of approximately USD 5.0 billion, it has 20,800 employees working in more than 300 facilities in 35 countries. Sonoco is one of the largest producers of uncoated recycled paperboard in the United States and Canada, producing more than 1 million tons annually from 11 mills.