WASHINGTON (dpa-AFX) - Sonoco Products Company (SON) said that it has initiated a review of strategic alternatives for its Thermoformed & Flexible Packaging or 'TFP' business, a part of the company's Consumer Packaging segment.
The company anticipates completing the strategic review process of TFP by the fourth quarter of 2024.
As a result of the expanded divestiture plans, Sonoco has modified its financing plans for its pending acquisition of Eviosys.
The company said it now plans to finance the Eviosys acquisition through a combination of prepayable debt, longer-term bond financing and/or cash on hand. With increased debt reduction from divestitures and cash from operations, Sonoco expects to further reduce net leverage from previous estimates within 24 months of the Eviosys acquisition. As a result, Sonoco no longer anticipates issuing equity to fund the Eviosys acquisition.
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