TOPPAN Holdings Acquires Sonoco's TFP Business for $1.8 Billion
Deal News | Dec 19, 2024 | PR Newswire Cision TOPPAN Holdings Inc.
In a strategic move aimed at bolstering its presence in the sustainable packaging industry, TOPPAN Holdings Inc., a major player in global packaging solutions from Tokyo, has announced an agreement to acquire Sonoco's Thermoformed and Flexible Packaging (TFP) business. Valued at approximately $1.8 billion, this acquisition enhances TOPPAN's capabilities by utilizing Sonoco's vast customer base and advanced solutions in North and South America. The TFP division, recognized for its innovative packaging across various sectors including food, healthcare, and retail, reported a revenue benchmark of $1.3 billion in 2023. This transaction is part of TOPPAN's broader strategy to lead in sustainable packaging globally, further supported by its dedicated mission to drive packaging innovation that contributes to societal well-being and environmental sustainability. The acquisition is anticipated to finalize in early 2025 after regulatory approvals. Notably, the deal arrangement saw participation from major advisory firms: Houlihan Lokey and Mitsubishi UFJ Morgan Stanley for TOPPAN, and Goldman Sachs and RBC Capital Markets for Sonoco.
Sectors
- Sustainable Packaging
- Manufacturing
- Corporate Finance
Geography
- Japan – Home country of TOPPAN Holdings, the acquiring company in the transaction.
- United States – Headquarters of Sonoco Products Company and primary operating region for the TFP business involved in the acquisition.
- North America – Represents one of the key markets where Sonoco's TFP business operates and holds a significant customer base.
- South America – Sonoco's TFP also holds a manufacturing and customer presence in this region.
Industry
- Sustainable Packaging – Focuses on the development and manufacturing of environmentally-friendly packaging solutions, significant to the strategic acquisition of Sonoco's TFP by TOPPAN Holdings.
- Manufacturing – Involves the production processes of both thermoformed and flexible packaging solutions essential in the product offerings of Sonoco's TFP.
- Corporate Finance – Relevant due to the substantial financial transaction between TOPPAN Holdings and Sonoco, involving major financial advisory firms.
Financials
- $1.8 billion – Acquisition price for Sonoco's Thermoformed & Flexible Packaging (TFP) business by TOPPAN Holdings.
- $1.3 billion – Approximate revenue for Sonoco's TFP business in 2023 on a pro forma standalone basis.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| TOPPAN Holdings Inc. | Acquiring Company | Company | A leading global provider of sustainable integrated solutions in diverse fields including packaging, headquartered in Tokyo, Japan. |
| Sonoco Products Company | Selling Company | Company | An American company specializing in sustainable packaging and the original owner of the TFP business. |
| Sonoco's Thermoformed & Flexible Packaging (TFP) Business | Target Company | Company | A business segment owned by Sonoco focused on delivering innovative packaging solutions across various commercial sectors. |
| Houlihan Lokey | Financial Advisor to TOPPAN | Company | Serves as the lead financial advisory firm assisting TOPPAN Holdings in the acquisition process. |
| Morrison & Foerster LLP | Legal Advisor to TOPPAN | Company | Law firm providing legal advisory services to TOPPAN Holdings for this transaction. |
| Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. | Financial Advisor to TOPPAN | Company | Additional financial advisory support to TOPPAN Holdings. |
| Goldman Sachs & Co. LLC | Financial Advisor to Sonoco | Company | Lead financial advisor assisting Sonoco in the divestment of their TFP business. |
| Freshfields LLP | Legal Advisor to Sonoco | Company | Legal advisory firm supporting Sonoco throughout the transaction. |
| RBC Capital Markets, LLC | Financial Advisor to Sonoco | Company | Provides additional financial advisory services to Sonoco for the TFP business sale. |
| Hideharu Maro | CEO of TOPPAN Holdings | Person | Representative Director, President & CEO at TOPPAN Holdings overseeing the acquisition strategy. |