Sonoco wraps up Clear Lam Packaging for plastic materials
Sonoco (NYSE: SON) has reached a deal to purchase Clear Lam Packaging Inc., a maker of plastic packaging film, for $170 million in cash. The Clear Lam deal is expected to build on the buyer’s thermoforming plastics division with condiment packaging to better serve grocery and retail food stores.
Clear Lam manufactures many different types of flexible packaging materials used as lidding products, stand up pouches, pillow bags, quad seal bags, and peel reseal films. The Elk Grove Village, Illinois-based target distributes its products to quick-service restaurants, contract packagers, retailers and consumer packaging companies.
“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," states Sonoco CEO Jack Sanders.
Sonoco, based in Hartsville, South Carolina, also provides consumer packaging, protective closure materials, industrial products and supply chain services. The company has operations in 33 countries and almost 20,000 employees. Sonoco previously acquired a similar company, Weidenhammer Packaging Group, for $383 million in cash.
Other food container and packaging products deals include: Dade Paper & Bag Co.’s agreement to merge with Imperial Bag & Paper Co. LLC to form a business creating more than $1 billion in total revenues; Sabert Corp.'s buying of Mullinix Packages Inc. from Mason Wells; Packaging Corp. of America’s (NYSE: PKG) acquiring another maker of corrugated products, TimBar Corp.; and Novolex's, backed by Wind Point Partners and minority investor TPG Growth, purchasing of Heritage Bag Co., a maker of trash bags, food storage bags, medical waste bags and ice bucket liners.
The current deal is expected to close in the third quarter of 2017. Rothschild & Co. is acting as financial adviser to Clear Lam.