US-based industrial and consumer packaging provider Sonoco has agreed to acquire Weidenhammer Packaging, in a deal worth €286m.
Upon completion, the acquisition is expected to increase Sonoco's global consumer-related packaging and services business to approximately $2.8bn in annual sales.
It is also expected to increase Sonoco's net sales in Europe to approximately 21% of total sales.
Commenting on the deal, Sonoco president and CEO M. Jack Sanders said: "Combining Weidenhammer's state-of-the-art production and technological capability places Sonoco in a leading position to provide its global consumer product customers with unparalleled packaging expertise throughout North America and Europe, and creates a strong presence in the emerging markets of South East Asia, China, Eastern Europe and South America."
The deal is expected to be financed through a combination of existing cash and debt. It is still subject to governmental regulatory review and is expected to close in the fourth quarter of 2014.
Headquartered in Germany, Weidenhammer Packaging operates 13 production facilities, including five in Germany, along with individual plants in Belgium, France, Greece, Netherlands, the UK, the US, Chile and Russia.
Its products cater to various sectors, such as processed foods, powdered beverages, tobacco, confectionery, personal care, pet food, pharmaceuticals and home and garden products.
Image: Weidenhammer provides composite cans and composite drums. Photo: courtesy of David Castillo Dominici / FreeDigitalPhotos.net.