We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Sonoco to Divest Rigid Plastics Blow Molding Operations
Read MoreHide Full Article
The maker of consumer and industrial packaging products, Sonoco Products Co. (SON - Free Report) has entered into a definitive agreement to sell its rigid plastics blow molding operations to Amcor, an Australian packaging company, for $280 million. The transaction is subject to regulatory approvals in the U.S.
Sonoco’s rigid plastics blow molding operations manufacture moulded packaging for food, drink and pharmaceuticals. These operations include 7 manufacturing facilities in the U.S. and Canada with 850 employees.
This divestiture will help Sonoco to focus on its consumer packaging portfolio. The company will also be able to further the expansion of its targeted growth businesses after the sale. These businesses include flexible packaging, thermoforming rigid plastics and temperature-assurance packaging for transporting pharmaceuticals, biologics and vaccines.
Sonoco’s Consumer Packaging segment includes a broad range of cost-reduction projects, high-value flexible packaging enhancements, rigid plastic containers technology and next-generation composite packaging. During 2015, the company initiated restructuring actions in this segment comprising the closure of six rigid paper facilities, the closure of a production line at a thermoforming plant in the U.S., and the sale of a portion of its metal ends and closures business in the U.S.
Further restructuring actions will drive growth. Sonoco also remains focused on offsetting current economic, market and currency headwinds by further optimizing its supply chain, driving productivity improvements and streamlining its cost structure.
Sonoco currently has a Zacks Rank #3 (Hold).
Better-ranked stocks in the sector include Berry Plastics Group, Inc. (BERY - Free Report) , Packaging Corporation of America (PKG - Free Report) and ACCO Brands Corporation (ACCO - Free Report) . While Berry Plastics sports a Zacks Rank #1 (Strong Buy), Packaging Corporation of America and ACCO Brands carry a Zacks Rank #2 (Buy).
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Sonoco to Divest Rigid Plastics Blow Molding Operations
The maker of consumer and industrial packaging products, Sonoco Products Co. (SON - Free Report) has entered into a definitive agreement to sell its rigid plastics blow molding operations to Amcor, an Australian packaging company, for $280 million. The transaction is subject to regulatory approvals in the U.S.
Sonoco’s rigid plastics blow molding operations manufacture moulded packaging for food, drink and pharmaceuticals. These operations include 7 manufacturing facilities in the U.S. and Canada with 850 employees.
This divestiture will help Sonoco to focus on its consumer packaging portfolio. The company will also be able to further the expansion of its targeted growth businesses after the sale. These businesses include flexible packaging, thermoforming rigid plastics and temperature-assurance packaging for transporting pharmaceuticals, biologics and vaccines.
SONOCO PRODUCTS Price
SONOCO PRODUCTS Price | SONOCO PRODUCTS Quote
Sonoco’s Consumer Packaging segment includes a broad range of cost-reduction projects, high-value flexible packaging enhancements, rigid plastic containers technology and next-generation composite packaging. During 2015, the company initiated restructuring actions in this segment comprising the closure of six rigid paper facilities, the closure of a production line at a thermoforming plant in the U.S., and the sale of a portion of its metal ends and closures business in the U.S.
Further restructuring actions will drive growth. Sonoco also remains focused on offsetting current economic, market and currency headwinds by further optimizing its supply chain, driving productivity improvements and streamlining its cost structure.
Sonoco currently has a Zacks Rank #3 (Hold).
Better-ranked stocks in the sector include Berry Plastics Group, Inc. (BERY - Free Report) , Packaging Corporation of America (PKG - Free Report) and ACCO Brands Corporation (ACCO - Free Report) . While Berry Plastics sports a Zacks Rank #1 (Strong Buy), Packaging Corporation of America and ACCO Brands carry a Zacks Rank #2 (Buy).
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>