TOPPAN Holdings Expands Sustainable Packaging Through Strategic Acquisition

TOPPAN Holdings Acquires Sonoco's TFP Business

Agreement reached on acquisition of Sonoco's TFP business as TOPPAN Group accelerates expansion of sustainable packaging business.

TOPPAN Holdings Inc. (TYO: 7911) has entered into an agreement to acquire Sonoco Products Company's (NYSE: SON) Thermoformed & Flexible Packaging (TFP) business for approximately $1.8 billion. This deal is designed to advance TOPPAN’s mission of expanding its sustainable packaging solutions across the Americas while combining the strengths of both companies.

This acquisition seamlessly merges Sonoco's extensive sales network and customer base with TOPPAN’s manufacturing prowess. The TFP unit specializes in flexible and thermoformed packaging, catering to critical sectors like food, healthcare, and retail. Last year, TFP recorded revenues of around $1.3 billion, underscoring its market relevance and growth potential.

Strategic Importance of the Acquisition

In his remarks, Hideharu Maro, Representative Director, President & CEO of TOPPAN Holdings, expressed enthusiasm about the acquisition, emphasizing its role in accelerating TOPPAN’s evolution into a global leader in sustainable packaging. By integrating both organizations' expertise, TOPPAN aims to enhance its innovative solutions, address customer needs effectively, and generate greater value for their shareholders.

The deal is set to finalize in the first half of 2025, pending standard regulatory approvals. This timeline reflects TOPPAN’s commitment to a careful and structured expansion into sustainable packaging.

The Vision Behind TOPPAN Group's Strategy

TOPPAN strives to be at the forefront of global solutions, particularly in sustainable packaging. Their medium-term strategies focus on evolving their portfolio to fulfill pressing global demands. By innovating and enhancing packaging solutions, TOPPAN aims to tackle ecological challenges while fulfilling its corporate mission.

TOPPAN's vision for its packaging division is to lead transformative change via packaging innovation, underscoring the importance of sustainability and future-oriented solutions. The company is dedicated to pursuing innovative materials and technologies that support a healthier planet for the coming generations.

With a robust global supply chain that supports every phase of packaging—from film manufacturing to the end product—TOPPAN is optimizing its operations to meet local and international brand demands efficiently.

Advisory Roles in the Acquisition

For this strategic acquisition, TOPPAN has secured financial and legal expertise from various advisors to ensure a smooth transaction. Houlihan Lokey serves as the lead financial advisor, while Morrison & Foerster LLP provides legal counsel. Additionally, Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. is involved as financial advisors.

On the side of Sonoco, Goldman Sachs & Co. LLC is the lead financial advisor, supported by legal advice from Freshfields LLP, along with services from RBC Capital Markets, LLC.

About TOPPAN Group

Established in Tokyo in 1900, TOPPAN Group is recognized globally as a diverse provider of integrated solutions across various sectors, including printing, communications, security, and packaging. The organization prides itself on its extensive workforce of over 50,000, applying cutting-edge technology and expertise to address the unique challenges faced by businesses and society.

About Sonoco's TFP Division

Sonoco's TFP division has established a significant presence across the Americas with about 4,500 employees in 22 manufacturing locations, coupled with over 700 patents. Its design capabilities across multiple countries reinforce its status as a leader in flexible packaging solutions.

Frequently Asked Questions

What is the value of the acquisition between TOPPAN and Sonoco?

The acquisition is valued at approximately $1.8 billion on a cash-free and debt-free basis.

What does Sonoco's TFP business specialize in?

Sonoco's TFP specializes in thermoformed and flexible packaging, serving industries such as food, healthcare, and retail.

When is the acquisition expected to close?

The acquisition is anticipated to close in the first half of 2025, subject to regulatory approvals and closing conditions.

What is TOPPAN Holdings' mission with this acquisition?

TOPPAN aims to expand its sustainable packaging solutions and enhance its position as a global leader in that sector.

Who are the advisors involved in this acquisition?

TOPPAN's advisors include Houlihan Lokey and Morrison & Foerster LLP, while Sonoco's advisors include Goldman Sachs & Co. LLC and Freshfields LLP.

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