Toppan Holdings Inc. plans to acquire Sonoco Products Co.’s thermoformed and flexible packaging business for $1.8 billion, marking its largest overseas expansion in the packaging sector.
The Tokyo-based company will gain 22 manufacturing plants and about 4,500 employees across North and South America through the purchase. The deal will give Toppan access to Sonoco’s customer base in food, retail, and medical sectors, along with more than 700 patents.
The transaction comes as packaging manufacturers worldwide face pressure to develop more sustainable solutions amid growing environmental concerns. Sonoco’s unit, which generates annual revenue of $1.3 billion, specializes in complex packaging for products ranging from snacks and prepared meals to healthcare items.
Toppan CEO Hideharu Maro said the company aims to leverage both firms’ strengths to expand its sustainable packaging business globally. The Japanese firm, which started as a printing company in 1900, has been diversifying its portfolio beyond traditional printing services.
The deal, expected to close in the first half of 2025, requires regulatory approvals. Houlihan Lokey and Mitsubishi UFJ Morgan Stanley Securities are advising Toppan, while Goldman Sachs and RBC Capital Markets are working with Sonoco.
