Sonoco sells packaging business unit for US$725M

Sonoco Products Company is selling its TheromoSafe business unit to Arsenal Capital Partners for US$725 million.

Sonoco has signed a definitive agreement to sell ThermoSafe, one of the leading providers of temperature-assured packaging, to Arsenal Capital Partners. The private equity investment firm specializes in building industrial growth and healthcare companies. 

“With the planned sale of ThermoSafe, we are completing the next step in Sonoco’s portfolio transformation, which has resulted in significantly streamlining our operations from a large portfolio of diversified businesses into two core global business segments,” says Sonoco’s president and CEO, Howard Coker. 

“This simplified structure features incredibly robust businesses with industry leadership and sustainable futures serving large global customers.” 

“Our transformation enables us to deliver more sustainable growth that builds on our strengths and allows us to drive value for our customers.”

Meeting global demands and regulations

ThermoSafe is a global provider of temperature-controlled packaging solutions specializing in the safe and efficient transport of pharmaceuticals, biologics, vaccines, and other temperature-sensitive products. 

Coker says Sonoco made ThermoSafe into one of the “industry’s leading players.” The packager has doubled its revenues since 2012 and improved technology and product offerings to serve its customers’ ever-changing needs. 

The purchase price consists of US$650 million on a cash-free and debt-free basis payable at closing, and up to US$75 million in additional consideration if certain performance measures for calendar year 2025 are met. 

Sonoco says the transaction is subject to customary closing conditions, including regulatory review, and is expected to be completed by the end of 2025. Net proceeds from the transaction are expected to repay existing debt.

In 2024, ThermoSafe generated over US$240 million in sales and approximately US$50 million in pro forma adjusted EBITDA. ThermoSafe offers bio-based insulation materials and reusable technologies for refrigerated, frozen, or controlled room-temperature applications. 

In addition, ThermoSafe’s ISC Labs deliver individualized design and testing services, and innovative packaging solutions along with qualification and validation services to meet regulatory requirements. ThermoSafe employs approximately 900 associates in its Americas, EMEA, and Asia operations.