Global packaging company Sonoco has closed the transaction in which it purchased the remaining 70% interest in Conitex Sonoco, which was set up in a joint venture (JV) with Spanish paper-based packaging products provider Texpack.
Established in 1998, Conitex Sonoco manufactures paper-based cones and tubes used in the textile industry.
Sonoco reached an agreement for the transaction in May, in a deal valued at $143m. The acquisition also includes a composite can plant in Spain.
Last year, Conitex Sonoco’s total sales stood at around $245m, while production of uncoated recycled paperboard was more than 300,000t.
The paperboard was used to produce about 1.4 billion tubes and cones.
Sonoco president and CEO Rob Tiede said: “The Conitex Sonoco relationship has been very successful over the past 20 years, and we see even further opportunity to grow Sonoco’s existing global paper-based tube and core business through this combination, especially in faster-growing emerging markets in Asia where we will be substantially increasing our manufacturing presence while more than doubling our current annual sales in the region.”
The JV business employs around 1,250 workers across 13 manufacturing locations in ten countries.
The manufacturing facilities include four paper mills, seven cone and tube converting operations and two plants dedicated to other production.
As a result of the transaction, Sonoco will retain Conitex Sonoco’s chief operating officer Michel Schmidlin and members of his global leadership team.
The company noted that it will report Conitex Sonoco’s financial results within its Paper / Industrial Converted Products segment, while the results pertaining to the Spanish composite can operations will be reported in the firm’s Consumer Packaging segment.
Sonoco provides consumer packaging, industrial products, protective packaging, and displays and packaging supply chain services. The firm has annualised net sales of about $5bn.