Japanese printing giant Toppan Holdings Inc. announced in December it will purchase Sonoco’s thermoformed & flexible packaging (TFP) business for approximately $1.8 billion. The deal represents a strategic move to bolster Toppan’s presence in the global sustainable packaging market.
Sonoco’s TFP business caters to diverse customers across the food, retail, and medical sectors. Its offerings include advanced packaging for high-value categories like snacks, condiments, healthcare, prepared meals, fresh products, coffee and pet food.
The TFP portfolio includes flexible packaging products such as rollstock, pouches, lidding, and EnviroFlex, which is a line focused on recyclability and incorporating recycled materials. In 2023, TFP reported approximately $1.3 billion in standalone revenue.
According to Toppan, the acquisition will help the company gain a foothold in the North and South American markets by combining Sonoco TFP’s customer base and sales network with Toppan’s manufacturing capabilities and technical expertise. For Sonoco, the sale of TFP will offset existing debt and fine-tune the remaining business.
“The decision to sell our TFP business accelerates our portfolio simplification strategy, streamlines our organizational structure, and enables more focused capital investments in our remaining industrial paper and consumer packaging businesses,” said Howard Coker, Sonoco’s president and CEO in a statement. “We will work closely with Toppan to ensure a successful transition for our employees, customers, and suppliers and wish the entire team all the best in the future.”
Expanding global reach
By adding Sonoco TFP, Toppan aims to grow its footprint in sustainable packaging on a global scale. Sonoco has a large manufacturing presence in the Americas with approximately 4,500 employees in 22 manufacturing plants.
“We are extremely pleased to have the opportunity to bring Sonoco’s TFP business to the Toppan Group,” said Hideharu Maro, representative director, president & CEO of Toppan Holdings. “In order to accelerate our strategy to become a global leader in sustainable packaging solutions, we will employ the complementary strengths of both parties to drive growth, solve customers’ needs and create significant value for our shareholders.”
This is the latest move in Toppan Group’s global strategy to scale its packaging business. In October, Toppan acquired Selinko SA, a provider of ID authentication platforms, to strengthen its European IoT and smart packaging business.
Transaction details
The transaction is on a cash-free and debt-free basis and subject to customary adjustment. It’s expected to close in the first half of 2025, pending regulatory approvals.
