Sonoco Products Co

SON: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
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Sonoco: Sale of Thermoformed and Flexible Packaging Business Builds on Portfolio Transformation

Spencer Liberman

Dec 19, 2024

No-moat-rated Sonoco announced on Dec. 18 that it will sell its thermoformed and flexible packaging, or TFP, business to TOPPAN Holdings for $1.8 billion. This is an expected move by Sonoco as the company announced it had initiated a strategic review of its TFP business a few months ago. Sonoco intends to use the funds from this sale to pay down debt following its $3.9 billion acquisition of Eviosys earlier this year. Management expects the deal will close in the first half of 2025. We think the sale of the TFP business is largely value-neutral, and as such, we are maintaining our $53 fair value estimate.

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Sonoco Products Co

Sonoco: Sale of Thermoformed and Flexible Packaging Business Builds on Portfolio Transformation

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