– Sonoco Products Company (NYSE: SON) announced a definitive agreement to sell its ThermoSafe business unit to Arsenal Capital Partners for up to $725 million
– The purchase price includes $650 million payable at closing and up to $75 million in additional consideration based on 2025 performance
– The transaction is subject to customary closing conditions, including regulatory review, and is expected to close by the end of 2025
– Net proceeds from the sale will be used to repay existing debt
– ThermoSafe, based in Arlington Heights, IL, is a global provider of temperature-controlled packaging solutions for pharmaceuticals, biologics, vaccines, and other sensitive products
– In 2024, ThermoSafe generated over $240 million in sales and approximately $50 million in proforma adjusted EBITDA
– ThermoSafe offers bio-based insulation, reusable technologies, and solutions for refrigerated, frozen, and controlled room temperature applications
– Its ISC Labs® provide custom design, testing, qualification, and validation services
– ThermoSafe employs about 900 people across the Americas, EMEA, and Asia
– CEO Howard Coker stated the sale completes Sonoco’s portfolio transformation into two core global business segments focused on sustainable growth
– ThermoSafe has more than doubled its revenues since 2012 with significant improvements in technology and offerings
– Net proceeds, excluding any additional consideration, are projected to reduce Sonoco’s net leverage ratio to approximately 3.5x in 2025
– Morgan Stanley & Co. LLC acted as financial advisor to Sonoco
– Freshfields LLP acted as legal advisor to Sonoco
– Kirkland & Ellis LLP acted as legal advisor to Arsenal
