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R SONOCO Sonoco Agrees to Acquire Ball Metalpack December 20 , 2021 Acquisition Complements Sonoco's Largest Consumer Packaging Franchise Transaction to Strengthen Cash Flows and Earnings Further Expands Company's Sustainable Packaging Portfolio HARTSVILLE , S.C. , Dec. 20 , 2021 ( GLOBE NEWSWIRE ) -- Sonoco ( NYSE : SON ) , one of the largest sustainable global packaging companies , today announced it has entered into a definitive agreement to acquire Ball Metalpack , a leading manufacturer of sustainable metal packaging for food and household products and the largest aerosol producer in North America , for $ 1.35 billion in cash before taking into consideration tax benefits with an estimated net present value of approximately $ 180 million . Ball Metalpack is a joint venture owned by Platinum Equity ( 51 percent ) and Ball Corporation ( NYSE : BLL ) ( 49 percent ) . Previously part of Ball Corporation , Ball Metalpack , headquartered in Broomfield , Colorado , was formed in 2018 and has more than 100 years of experience in producing steel tinplate food and aerosol cans , as well as closures and packaging components from eight operations in Canton and Columbus , Ohio ; Milwaukee and Deforest , Wisconsin ; Chestnut Hill , Tennessee ; Horsham , Pennsylvania ; and Oakdale , California . Ball Metalpack is projected to generate approximately $ 850 million in revenue and $ 111 million of adjusted EBITDA in 2021 . " This acquisition fits our strategy of investing in Sonoco's core businesses as it complements our largest Consumer Packaging franchise - our iconic global Paper Cans and Closures business . In addition , it further expands our already established sustainable packaging portfolio with metal packaging , which is the most recycled packaging substrate in the U.S. , " said Howard Coker , Sonoco President and CEO . " We've had a long relationship with the Ball Metalpack team , including previously owning and operating two of their manufacturing facilities in Canton . With a comprehensive and innovative product portfolio that has received significant recent investments in new technology and capacity , we believe the addition of Ball Metalpack will further strengthen our stable cash flow generation while driving solid earnings accretion . " " Ball Corporation values its long - standing relationships with Platinum Equity and Sonoco . We are pleased with today's Ball Metalpack news and the value we have collectively created across the tinplate steel packaging business . The joint venture sale is a positive move , and cash proceeds received from Ball's minority interest will further benefit our shareholders , " said John A. Hayes , chairman and CEO . " This agreement further enhances Ball's ability to return value to shareholders via share buybacks and dividends , and to make EVA enhancing investments . " " Ball Metalpack has undergone a meaningful transformation over the past three years and is now ready to start a new chapter , " said Platinum Equity Partner Louis Samson . " We made substantial investments in equipment , technology and human capital so the business is very well positioned for continued growth , and we believe Sonoco is the ideal home going forward . " Once the transaction is closed , Sonoco anticipates the acquired business ' financial results will be reported in the Company's Consumer Packaging segment . Jim Peterson , who is CEO of Ball Metalpack and has more than 15 years of leadership experience in the metal packaging industry , will continue to lead the business along with a tenured management team that has more than 90 years of experience . There are no expected changes in operations or customer relationships as a result of the transaction . Closing of the transaction is subject to satisfaction of customary closing conditions , including regulatory review , and is expected to be completed in the first quarter of 2022 . Transaction Details The purchase price for the acquisition is $ 1.35 billion in cash , subject to customary adjustments , including for working capital , cash and indebtedness . With the acquisition , Sonoco expects to realize tax benefits having an estimated net present value of approximately $ 180 million mostly as a result of the step up in tax basis of the assets from the acquisition and net operating loss carryforwards . In addition , Sonoco expects to realize at least $ 20 million in annual synergies from procurement and SG & A savings within three years . The transaction multiple , adjusted for tax benefits and synergies , is projected to be approximately 8.9 times Ball Metalpack's 2021 adjusted EBITDA . The acquisition is expected to be immediately accretive to earnings per share in 2022 , with additional accretion expected in 2023 from synergies , new business development and productivity improvements stemming from recent investments . In connection with the transaction , Sonoco has obtained a commitment from JPMorgan Chase Bank , N.A. for a $ 1.0 billion senior unsecured bridge loan facility , subject to customary conditions . The Company currently intends to replace the bridge facility prior to the closing of the acquisition with permanent financing , which may include the issuance of debt securities and a term loan facility . Sonoco is committed to its investment grade credit rating and expects to focus its increased cash flow to support deleveraging within two years , while continuing to return cash to shareholders by growing dividends from increased earnings . Advisors J.P. Morgan Securities LLC is serving as exclusive financial advisor to Sonoco and Freshfields Bruckhaus Deringer LLP is serving as legal advisor . Goldman Sachs is serving as financial advisor to Ball Metalpack on the sale to Sonoco . Latham & Watkins LLP is serving as Platinum Equity's legal counsel on the transaction . Skadden , Arps , Slate , Meagher & Flom LLP is serving as legal counsel to Ball Corporation .