MOSCOW (MRC) -- Sonoco has announced it has signed a definitive agreement to acquire 100% of the stock of Clear Lam Packaging, Inc., a family-held developer and manufacturer of flexible and forming plastic packaging films for approximately USD170 million in cash, reported StreetInsider.
The transaction is subject to normal regulatory review and is expected to close in the third quarter of 2017.
Founded in 1969, the Elk Grove Village, Ill.-based company is projecting 2017 sales of approximately USD140 million and operates state-of-the-art manufacturing facilities in Elk Grove Village and Nanjing, China, with nearly 400 employees. Clear Lam is a technology leader in the development, production and conversion of high barrier flexible and forming films used to package a variety of products for consumer packaged goods companies, retailers and other industrial manufacturers, with a focus on structures used for perishable foods. Clear Lam serves markets including condiments, dairy, meats and cheese, produce, confection, fresh and prepared foods, nuts and snacks, food service and personal care.
According to Jack Sanders, Sonoco president and chief executive officer, the acquisition of Clear Lam will further build on Sonoco’s strategy of expanding its global Flexible Packaging and Thermoforming Plastics operations to provide offerings serving the fast-growing perimeter of grocery and retail food stores.
"The addition of Clear Lam will significantly expand our Flexible Packaging and Thermoforming Plastics operations as we will be able to develop, produce and convert high barrier flexible and forming film structures to package fresh and prepared food products purchased in the growing store perimeter," said Sanders. "As an example, Clear Lam complements our recent acquisition of Peninsula Packaging’s thermoforming operations by being able to produce barrier flexible film lidding that extends shelf life, is resealable and provides a complete packaging solution to our fresh fruit and vegetable customers."
Concerning the acquisition, Clear Lam Packaging President James Sanfilippo said, "We are excited to become part of the Sonoco family. I see the two companies with similar cultures, focused on building strong relationships with employees, customers and suppliers. Innovation has always been a driving force within Clear Lam and Sonoco, and it will continue to be a foundation for further growth."
Sonoco Executive Vice President and Chief Operating Officer Rob Tiede said the addition of Clear Lam provides significant technology advantages as well as being able to drive synergies through the internalization of materials for Sonoco’s existing flexible and thermoforming customers.
As MRC informed before, in 2014, Sonoco Products Co. announced the acquisition of Weidenhammer Packaging Group GmbH of Germany for USD383 million, which included plastic packaging technology that the company was targeting for growth in the United States.
Sonoco Plastics is a leading manufacturer of mono-layer and multi-layer blow-molded bottles and jars, thermoformed cups and trays and engineered molded and extruded containers, spools and trays. The Company has 25 plastics operations in the United States, Canada, Mexico, Ireland, Netherlands and Germany. In addition to the Beauty Park facility, Sonoco Plastics operates a state-of-the-art food-grade, blow-molding and injection molding plant in Columbus, Ohio. The Company is currently reviewing plans for additional expansion of this facility as well.