Sonoco to buy Peninsula Packaging Companyfor $230m
US-based consumer packaging company Sonoco has entered a definitive agreement to purchase Peninsula Packaging for around $230m.
Peninsula Packaging manufactures thermoformed packaging for fresh fruit and vegetables, prepared salad mixes, and baked items found in supermarkets.
Established in 2001, the company currently has four manufacturing facilities in the US and one in Mexico.
Subject to normal regulatory review, the newly announced deal is expected to be completed by mid-2017.
Sonoco president and CEOJack Sanders said: “Our goal has been to strategically expand our consumer packaging portfolio to grow our offerings in both the centre of the store and the fast growing perimeter.
“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 centre of the store, including those serving a range of frozen and shelf-stable foods.”
The company also noted that in the last few years, supermarkets have spent $15bn and increased their freshly prepared options to boost sales.
Various studies have also projected that fresh food sales in perimeter stores could achieve a compound average growth rate (CAGR) of between 6% and 7% over the next four years.
In November 2016, Sonoco acquired US-based flexible packaging company Plastic Packaging (PPI) for an undisclosed sum.
Image: Fresh strawberries packed in thermoformed packaging. Photo: courtesy of Sonoco.