Sonoco, one of the largest diversified global packaging companies, completed the acquisition of Clear Lam Packaging, announced in June 2017, for approximately USD170 million in cash.
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.
Rob Tiede, Sonoco executive VP and COO, commented:
“One of the main attractions for us was the opportunity to leverage Clear Lam’s expertise in modified atmosphere packaging, which comes from a strong base of material science knowledge when it comes to films, additives and adhesives.
Clear Lam has also developed new portion-control condiment packaging, peel-reseal films for fresh fruits and vegetables, forming films for healthy yogurts, lidding films for fresh guacamole and several new packaging films that expand shelf life. The addition of their portfolio and technical capabilities for producing multi-layer film structures enhances and expands our ability to serve the rapidly growing perimeter of supermarkets in fresh food products, while driving synergies through the internalization of materials for Sonoco’s existing flexible and thermoforming customers.”
To finance the transaction, Sonoco is utilizing available credit facilities, including a new USD 750 million bank credit facility.
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.