Sustainable packaging solutions provider Sonoco Products Company has agreed to divest its ThermoSafe business unit to private equity company Arsenal Capital Partners for up to $725m.

The deal includes a base purchase price of $650m, with an additional $75m contingent on ThermoSafe's performance in 2025.

The transaction is expected to conclude by the end of 2025.

The divestment will complete Sonoco's transition to a "global metal and fibre packaging leader".

Sonoco president and CEO Howard Coker stated: “With the planned sale of ThermoSafe, we are completing the next step in Sonoco’s portfolio transformation, which has resulted in significantly streamlining our operations from a large portfolio of diversified businesses into two core global business segments. This simplified structure features incredibly robust businesses with industry leadership and sustainable futures serving large global customers.” 

ThermoSafe, headquartered in Arlington Heights, Illinois, provides temperature-controlled packaging solutions, crucial for the safe transportation of sensitive pharmaceuticals and biologics.

In 2024, the business reported sales exceeding $240m and $50m in proforma adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA).

ThermoSafe's portfolio has advanced technology with bio-based insulation and reusable options, serving a wide range of temperature requirements.

The sale is anticipated to reduce Sonoco's net leverage ratio to roughly 3.5, excluding any additional consideration from the deal.

Morgan Stanley & Co provided financial counsel to Sonoco for the transaction. Freshfields served as the legal advisor to Sonoco, while Arsenal took legal assistance from Kirkland & Ellis.

Coker added: “Our transformation enables us to deliver more sustainable growth that builds on our strengths and allows us to drive value for our customers. Sonoco is proud of what we have accomplished in building ThermoSafe into one of the industry’s leading players while more than doubling revenues since 2012 and substantially improving technology and product offerings serving our customers’ ever-changing needs.”

In July 2025, Sonoco announced a capital investment of $30m in its Orlando, US, facility to increase its production capacity in the adhesives and sealants segment.