Sonoco to acquire Peninsula Packaging Company
Sonoco has signed a definitive agreement to acquire Peninsula Packaging Company for approximately $230 million in cash. Peninsula, which is owned by a fund managed by Odyssey Investment Partners, is a manufacturer of thermoformed packaging for fresh fruit and vegetables. The transaction is subject to normal regulatory review and is expected to close by the second quarter of 2017.
Founded in 2001, the Exeter, California-based company has 2016 proforma sales of approximately $190 million and operates five manufacturing facilities, four in the United States and one in Mexico. The majority of its business is focused on packaging for a range of whole fresh fruits, pre-cut fruits and produce and prepared salad mixes, as well as baked goods. Peninsula’s customer base includes most of the leading household names for fresh fruits and vegetables found at retail, according to the company.
“With the addition of Peninsula, Sonoco will nearly double its thermoforming packaging capabilities,” said Jack Sanders, Sonoco president and chief executive officer.
“This combination will allow Sonoco to deliver manufacturing and supply chain synergies gained from the connection between thermoformed trays and film lidding stock, which is an important customer differentiator,” said Rob Tiede, Sonoco executive vice president and chief operating officer.
William Blair served as financial advisor to Sonoco. Peninsula was advised by BMO Capital Markets and Lazard Middle Market.