The deal is valued at approximately $187m. ESCO’s Technical Packaging business includes Thermoform Engineered Quality and Plastique Holdings, together known as TEQ.
The business was sold to subsidiaries Sonoco Plastics and Sonoco Holdings.
Sonoco president and CEO Rob Tiede said: “TEQ provides a strong platform to further expand Sonoco’s growing healthcare packaging business, which includes our best-in-class ThermoSafe temperature-assured pharmaceutical packaging, injection-moulded vials, multi-cell cuvettes and appliances, thermoformed trays for medical devices and OTC medical products, along with our Alloyd heat-sealing equipment for commercial medical applications.”
The deal is expected to be accretive to Sonoco’s 2020 earnings and completion is dependent on customary regulatory review. It is expected to close by the end of the year.
No changes will take place in TEQ’s leadership or customer relationships, following the completion of the acquisition.
TEQ president Randy Loga said: “The US and Europe will remain the largest consumers of healthcare packaging as new sophisticated therapies with specialised packaging needs continue to be introduced.
“TEQ’s history of growth mirrors the growth in healthcare spending and medical device utilisation, and we look forward to joining Sonoco in further expanding our capabilities to meet our customers’ future needs.”
Based in Huntley, Illinois, TEQ has three thermoforming and extrusion facilities in the US.
The company owns thermoforming operation facilities in the UK and Poland. It also has a moulded-fibre manufacturing plant in Poland.
Each TEQ facility manufactures sterile, barrier packaging systems for pharmaceuticals and medical devices. The plants also produce recyclable, moulded-pulp-fibre packaging and thermoformed plastic packaging for a range of consumer products, especially in Europe.