Sonoco, one of the largest diversified global packaging companies, announced a definitive agreement to acquire 100% of the stock of Clear Lam Packaging for approximately USD 170 million in cash. The transaction is subject to normal regulatory review and is expected to close in the third quarter of 2017.
Clear Lam Packaging is a family-held developer and manufacturer of flexible and forming plastic packaging films. The company operates state-of-the-art manufacturing facilities in Elk Grove Village, USA and Nanjing, China, with nearly 400 employees. Clear Lam is a technology leader in the development, production and conversion of high barrier flexible and forming films used to package a variety of products for consumer packaged goods companies, retailers and other industrial manufacturers, with a focus on structures used for perishable foods. It serves markets including condiments, dairy, meats and cheese, produce, confection, fresh and prepared foods, nuts and snacks, food service and personal care. For 2017 the company is projecting sales of approximately USD 140 million.
Jack Sanders, Sonoco president and CEO, commented:
“The addition of Clear Lam will significantly expand our Flexible Packaging and Thermoforming Plastics operations as we will be able to develop, produce and convert high barrier flexible and forming film structures to package fresh and prepared food products purchased in the growing store perimeter. As an example, Clear Lam complements our recent acquisition of Peninsula Packaging’s thermoforming operations by being able to produce barrier flexible film lidding that extends shelf life, is resealable and provides a complete packaging solution to our fresh fruit and vegetable customers.”
The company is a global provider of a variety of consumer packaging, industrial products, protective packaging and packaging supply chain services. With annualized net sales of approximately USD 5.0 billion, it has 20,800 employees working in more than 300 facilities in 35 countries. Sonoco is one of the largest producers of uncoated recycled paperboard in the United States and Canada, producing more than 1 million tons annually from 11 mills.