Sonoco Completes $330 Million Acquisition of RTS Packaging
RTS Packaging is one of the world’s largest partition manufacturing companies, offering a solid fiber and specialty paperboard products for partition and pad inner packaging applications.
Sept. 11, 2023 – Sonoco Products Company on Sept. 8 announced the completion of its acquisition of the remaining equity interest in RTS Packaging, LLC from joint venture partner WestRock and one WestRock paper mill in Chattanooga, Tennessee.
RTS Packaging is one of the world’s largest partition manufacturing companies. As a fully integrated packaging company, RTS offers a continuous supply of solid fiber and specialty paperboard products for partition and pad inner packaging applications.
The Chattanooga mill supplies RTS with URB (uncoated recycled paperboard).
Sonoco said the acquisition, which was originally announced on November 9, 2022, will further strengthen and expand Sonoco’s 100% recycled fiber-based packaging solutions to serve growing consumer wine, spirits, food, beauty and healthcare markets.
Prior to closing the transaction, Sonoco was a 35% owner in the joint venture with WestRock.
With this acquisition, Sonoco adds a network of 15 operations and 1,100 employees in the U.S., Mexico, and South America.
The purchase price for this acquisition was $330 million, subject to customary price adjustments.
Sonoco funded the acquisition with borrowings under its existing credit facilities and cash on hand. After the transaction, Sonoco’s net debt to adjusted EBITDA ratio is less than 2.9x.
The acquisition is expected to be immediately accretive to earnings per share, excluding the impact of purchase accounting adjustments, Sonoco said.