WASHINGTON (dpa-AFX) - Sonoco Products Company (SON), a packaging solutions provider, Monday said it has agreed to acquire Eviosys, a manufacturer of food cans, ends and closures, from KPS Capital Partners, LP for about $3.9 billion.
The purchase price represents a multiple of 7.3 times 2024 expected adjusted earnings before interest, taxes, depreciation, and amortization or adjusted EBITDA including synergies.
Sonoco estimates that Eviosys will have revenue of about $2.5 billion in 2024, and adjusted EBITDA of nearly $430 million.
Sonoco expects the transaction to immediately add to adjusted EPS and more than 25% accretive to 2025 adjusted EPS. It sees more than $100 million of synergies from the integration of Eviosys with Sonoco's complementary metal can business.
'The acquisition of Eviosys establishes our global leadership in metal food can and aerosol packaging, marking an exciting milestone in our strategy to scale our core strategic metal packaging platform and position Sonoco for long-term value creation,' said Howard Coker, President and Chief Executive Officer of Sonoco.
The Transaction is expected to occur by the end of 2024.
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