HARTSVILLE, SC, Nov. 09, 2022 (GLOBE NEWSWIRE) – Sonoco Products Company SON (“Sonoco” or the “Company”), a diversified global leader in packaging, announced today that it has entered into a definitive agreement to purchase the remaining equity interest in RTS Packaging, LLC (“RTS”) from joint venture partner WestRock Company (“WestRock”) and a WestRock paper mill in Chattanooga, Tennessee for $330 million in cash, subject to customary pricing adjustments. Valuation is approximately 6.6x Adjusted EBITDA excluding synergies and 5x Adjusted EBITDA pro forma for synergies. Sonoco also expects to realize $40 million in tax benefits from the transaction. Upon closing of the transaction, Sonoco will own 100% of RTS, which was formerly operated as a joint venture between Sonoco (35% ownership) and WestRock (65% ownership). The transaction, which was unanimously approved by Sonoco’s board of directors, is expected to close in the first half of 2023, subject to regulatory approvals and customary closing conditions.

RTS Packaging was formed in 1997 as a joint venture combining the former protective packaging operations of WestRock (formerly known as the Rock-Tenn Company) and Sonoco to market all-fiber dividers made from 100% recycled paperboard to glass container makers and producers of wine, spirits, food and beverages pharmaceuticals. For the year ended December 31, 2022, the acquired assets are expected to generate approximately $270 million in revenue and $50 million in EBITDA. In addition, the Company expects to realize synergies totaling $16 million over the next 24 months following closing.

The transaction gives Sonoco full ownership of fourteen converters, including ten in the United States, two in Mexico and two in South America, and one paper mill in the United States. Upon completion of the transaction, approximately 1,100 people will become Sonoco employees. The Company expects to complete the cash acquisition with…