The packaging company Sonoco, Hartsville, South Carolina, has signed a definitive agreement to acquire Peninsula Packaging Co., Exeter, California, for about $230 million in cash. The deal will close to double Sonoco’s thermoforming operations.
Peninsula, which is owned by a fund managed by Odyssey Investment Partners, LLC, manufactures thermoformed packaging for fresh fruit and vegetables sold in supermarkets. The company operates five manufacturing plants – four in the United Sates and one in Mexico.
The transaction is expected to close by the second quarter of 2017.
"Our goal has been to strategically expand our consumer packaging portfolio to grow our offerings in both the center of the store and the fast-growing perimeter," says Jack Sanders, Sonoco’s president and CEO. "With the addition of Peninsula, Sonoco will nearly double its thermoforming packaging capabilities and occupy a strong packaging position serving the perimeter 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."
Peninsula Packaging says that it is the largest consumer of recycled drink bottles used for packing in the United States. The company notes that in 2012, Peninsula used more than 3 billion recycled 20-ounce water bottles to produce its various food packaging products.