Sonoco Products Company announced the completion of the sale of its ThermoSafe business unit to Arsenal Capital Partners, a specialized private equity firm, for a total purchase price of up to $725 million.
The transaction, previously announced, includes an initial payment of $650 million on a cash- and debt-free basis at closing, with an additional consideration of up to $75 million contingent on ThermoSafe meeting specific performance targets for 2025. Sonoco stated that the net proceeds from the sale will be used to reduce existing company debt.
The divestiture of ThermoSafe — a leading provider of temperature assurance technologies for the healthcare and life sciences sectors — marks a significant step in Sonoco’s ongoing portfolio transformation.
“The completion of the sale of ThermoSafe substantially concludes Sonoco’s portfolio transformation,” said Howard Coker, President and Chief Executive Officer of Sonoco. “This process has simplified our operations from a large portfolio of businesses into two core global segments focused on metal and paper packaging for consumer and industrial markets.”
Coker added, “Sonoco is proud of what we have accomplished in building ThermoSafe into one of the industry’s leading players. We thank the entire ThermoSafe team for their dedication and wish them and their new owners continued success in the future.”
The transaction is expected to strengthen Sonoco’s balance sheet. On a pro forma basis, net proceeds from the sale, excluding any additional consideration, are projected to reduce the company’s net leverage ratio to approximately 3.4x.
Morgan Stanley & Co. LLC served as financial advisor to Sonoco, with Freshfields LLP providing legal counsel. Raymond James was the lead financial advisor to Arsenal, while Kirkland & Ellis LLP acted as its legal counsel.
Founded in 2000, Arsenal Capital Partners has raised more than $10 billion in institutional equity and specializes in building market-leading industrial growth and healthcare companies — positioning ThermoSafe for accelerated future expansion under its ownership.
Founded in 1899, Sonoco is a global leader in sustainable metal and fiber-based packaging for consumer and industrial markets. The company operates about 285 facilities in 40 countries and employs more than 23,000 people.
