Benzinga | Dec 20, 2021 07:32AM EST

Sonoco Products To Acquire Ball Metalpack For $1.35B

Sonoco Products Co (NYSE:SON) has entered into a definitive agreement to acquire Ball Metalpack, a manufacturer of sustainable metal packaging for food and household products and aerosol producer, for $1.35 billion in cash.

* Ball Metalpack is a joint venture owned by Platinum Equity (51%) and Ball Corp (NYSE:BLL).

* Ball Metalpack is projected to generate about $850 million in revenue and $111 million of adjusted EBITDA in 2021.

* Sonoco expects the acquisition to expand its sustainable packaging portfolio with metal packaging and immediately accretive to EPS in 2022.

* Sonoco indicates to realize tax benefits having an estimated net present value of approximately $180 million.

* Sonoco anticipates reporting the acquired business' financial results in its Consumer Packaging segment. Jim Peterson, CEO of Ball Metalpack, will continue to lead the business.

* Sonoco has obtained a commitment from JPMorgan Chase Bank, N.A. for a $1.0 billion senior unsecured bridge loan facility in connection with the transaction. It held $160 million in cash and equivalents as of October 3, 2021.

* Sonoco expects to close the deal in the first quarter of 2022.

* Price Action: SON shares closed lower by 1.49% at $58.69 on Friday.