TOPPAN acquires Sonoco’s Thermoformed & Flexible Packaging business for US$1.8B

JAPAN – TOPPAN Holdings Inc. has announced a definitive agreement to acquire Sonoco Products Company’s Thermoformed & Flexible Packaging (TFP) business for approximately US$1.8 billion on a cash-free and debt-free basis, subject to customary adjustments.

This strategic acquisition combines Sonoco TFP’s extensive sales network, customer base, and solutions expertise in North and South America with the global technical and manufacturing capabilities of the TOPPAN Group, bolstering its position in sustainable packaging solutions. 

Sonoco’s TFP business is a market leader in thermoformed and flexible packaging, serving diverse industries such as food, retail, and healthcare.

Its portfolio includes packaging for value-added categories like snacks, condiments, healthcare products, prepared meals, fresh goods, coffee, and pet food.

In 2023, TFP generated approximately US$1.3 billion in revenue on a pro forma standalone basis. 

Hideharu Maro, Representative Director, President, and CEO of TOPPAN Holdings, expressed enthusiasm for the acquisition, “We are thrilled to bring Sonoco’s TFP business into the TOPPAN Group.

“This milestone accelerates our strategy to become a global leader in sustainable packaging, combining complementary strengths to drive growth, address customer needs, and deliver value to our shareholders.”

Strategic vision and sustainable growth

The acquisition aligns with the TOPPAN Group’s medium-term strategy of addressing global challenges through innovative solutions.

With a mission to create a sustainable future, TOPPAN’s packaging division operates under the vision of, “Changing the World through Packaging Innovation.”

By expanding its global supply chain for film and packaging manufacturing, TOPPAN aims to meet the needs of brand owners locally and internationally while reducing environmental impact through cutting-edge materials and technologies.

The deal is subject to regulatory approvals and customary closing conditions, with completion expected in the first half of 2025.

This acquisition marks a significant step in TOPPAN’s global expansion and commitment to sustainable innovation, strengthening its position as a leading solution provider in the packaging industry.

In October, the company acquired 100% of the stock of Selinko SA, a company engaged in the development and sales of ID authentication platforms mainly in Europe, and completed procedures to make the company a wholly owned subsidiary this month.

The acquisition will strengthen the TOPPAN Group’s services in the European IoT and smart packaging domain and accelerate expansion of its IoT and smart packaging business for the luxury industry, which is seeing increasing demand in the European market.

Through an ID authentication platform using secure NFC tags, Selinko provides authenticity verification solutions with a focus on the European luxury brand, high-end beverage, cosmetics, and other premium industries and delivers services matched to the needs of various sectors, including wine, spirits, leather goods, perfumes, cosmetics, footwear, and clothing.

The TOPPAN Group has defined “Digital (DX) & Sustainable (SX) Transformation” as the basic policy of its Medium Term Plan, and TOPPAN Digital Inc.

TOPPAN Digital is leading efforts to drive DX across the Group through its Erhoeht-X business, which supports digital innovation of society and companies as well as advancing the TOPPAN Group’s own digital transformation.

In the area of security, one of the priority categories of the Erhoeht-X™ business, the TOPPAN Group is expanding its IoT and smart packaging business globally, making a minority investment in Selinko in 2019 and providing solutions centered on Selinko’s ID authentication platform to a broad range of industries inside and outside Japan.

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