Sonoco Products Co 8-K, filed Jan 2, 2020
Sonoco Products Co (SON)
8-K
2020-01-02
For: 2019-12-31
View Original
Added on
April 08, 2026
About this 8-K
Sonoco Products Co filed this 8-K on January 2, 2020, reporting on events of December 31, 2019.
Items reported
- Item 2.01: Completed an acquisition or sale of assets
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): December 31, 2019
Commission File No. 001-11261
| Incorporated under the laws | I.R.S. Employer Identification | |||||||
of | No. | |||||||
Telephone: 843 /383-7000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards pursuant to Section 13(a) of the Exchange Act. ☐
Section 2 - Financial Information
Item 2.01 Completion of Acquisition or Disposition of Assets.
On December 31, 2019, Sonoco Products Company (the "Company"), completed the acquisition of Thermoform
Engineered Quality, LLC, and Plastique Holdings, LTD, (together "TEQ"), from ESCO Technologies, Inc,
subject to the terms and conditions of the Equity Purchase Agreement dated November 15, 2019 and filed in the
Company's Form 8-K on November 19, 2019, for net cash of approximately $187 million. The Company funded
the transaction using short-term credit facilities. As is typical, final consideration will be subject to a post-closing adjustment for the change in net working capital to the date of closing.
The operations acquired consist of three thermoforming and extrusion facilities in the United States along with a
thermoforming operation in the United Kingdom and thermoforming and molded-fiber manufacturing in Poland,
which together employ approximately 500 associates. These facilities are capable of producing sterile, barrier
packaging systems for pharmaceuticals and medical devices and recyclable molded pulp fiber packaging and
thermoformed plastic packaging for multiple consumer products. The acquisition of TEQ provides a strong
platform to further expand Sonoco's growing healthcare packaging business. TEQ's financial results will be
reported within the Company's Consumer Packaging segment.
Financial statements of TEQ and pro forma information are not included in this Form 8-K as the criteria
under Rule 3-05(b) and Article 11, respectively, of Regulation S-X were not met.
A copy of the news release issued by Sonoco announcing the completion of this acquisition is being filed as
Exhibit 99 to this Current Report on Form 8-K and is incorporated by reference herein. For additional
information regarding TEQ, reference is made to the Company's Form 8-K filed on November 19, 2019.
Section 9 - Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| Exhibit Index | ||||||||||||||
| 99 | ||||||||||||||
| 101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |||||||||||||
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document | |||||||||||||
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||||||||
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||||||||
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||||||||
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||||||||
| Exhibit 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | |||||||||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| SONOCO PRODUCTS COMPANY | |||||||||||||||||||||||||||||
| Date: January 2, 2020 | By: | /s/ Julie C. Albrecht | |||||||||||||||||||||||||||
| Julie C. Albrecht | |||||||||||||||||||||||||||||
| Vice President and Chief Financial Officer | |||||||||||||||||||||||||||||
Exhibit 99
| January 2, 2020 | Contact: | Roger Schrum | |||||||||
| +843-339-6018 | |||||||||||
| roger.schrum@sonoco.com | |||||||||||
Sonoco Acquires Healthcare Packaging and Medical Device Thermoformer
HARTSVILLE, S.C., U.S. – Sonoco (NYSE: SON), one of the most sustainable, diversified global packaging companies, today announced it has completed the acquisition of Thermoform Engineered Quality, LLC, and Plastique Holdings, LTD, (together TEQ), a global manufacturer of thermoformed packaging serving healthcare, medical device and consumer markets, from ESCO Technologies, Inc. (NYSE: ESE) for $187 million in cash.
TEQ, headquartered in Huntley, IL, produced sales of $87 million in the fiscal year ended September 30, 2019, and operates three thermoforming and extrusion facilities in the United States along with a thermoforming operation in the United Kingdom, and thermoforming and molded-fiber manufacturing in Poland. Each facility has state-of-the-art cleanroom capabilities enabling the production of sterile, barrier packaging systems for pharmaceuticals and medical devices. In addition, TEQ produces recyclable, molded-pulp-fiber packaging and thermoformed plastic packaging for multiple consumer products primarily in Europe. The company has approximately 500 associates.
“The fast-growing healthcare packaging space is a key area of growth for Sonoco and with the addition of TEQ we now have a suite of products and services available to become a much larger supplier to healthcare and medical device manufacturers,” said Rob Tiede, Sonoco President and CEO. “Entering 2020, Sonoco Healthcare Packaging group now includes TEQ’s broad capabilities, along with our best-in-class ThermoSafe™ temperature-assured pharmaceutical packaging; injection-molded vials, multi-cell cuvettes and appliances; thermoformed trays for medical devices and OTC medical products; and our Alloyd heat-sealing equipment for commercial medical applications.”
Sonoco funded the TEQ transaction using short-term credit facilities and it is expected to be accretive to Sonoco’s 2020 earnings. TEQ President Randy Loga and his leadership team will remain with Sonoco and TEQ’s financial results will be reported within Sonoco’s Consumer Packaging segment.
About Sonoco
Founded in 1899, Sonoco (NYSE: SON) is a global provider of a variety of consumer packaging, industrial products, protective packaging, and displays and packaging supply chain services. With annualized net sales of approximately $5.4 billion, the Company has 23,000 employees working in approximately 300 operations in 36 countries, serving some of the world’s best known brands in some 85 nations. Sonoco is committed to creating sustainable products, services and programs for our customers, employees and communities that support our corporate purpose of Better Packaging. Better Life. The Company ranked first in the Packaging sector on Fortune’s World’s Most Admired Companies for 2019 as well as Barron’s 100 Most Sustainable Companies. For more information, visit www.sonoco.com.
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