Sonoco Divests ThermoSafe to Arsenal Capital Partners

Sonoco Products Company (NYSE: SON) has signed a definitive agreement to sell its ThermoSafe business, a global leader in temperature-controlled packaging, to Arsenal Capital Partners for up to $725 million. The deal includes $650 million payable at closing and up to $75 million in performance-based consideration for 2025.

ThermoSafe, headquartered in Arlington Heights, IL, generated over $240 million in sales and about $50 million in proforma adjusted EBITDA in 2024. The company employs around 900 people and offers advanced packaging technologies, bio-based insulation, reusable solutions, and design and testing services through its ISC Labs®.

The transaction is subject to regulatory approvals and is expected to close by the end of 2025. Proceeds will be used to repay existing debt.

With the planned sale of ThermoSafe, we are completing the next step in Sonoco’s portfolio transformation, which has resulted in significantly streamlining our operations from a large portfolio of diversified businesses into two core global business segments. This simplified structure features incredibly robust businesses with industry leadership and sustainable futures serving large global customers.

Our transformation enables us to deliver more sustainable growth that build on our strengths and allow us to drive value for our customers. Sonoco is proud of what we have accomplished in building ThermoSafe into one of the industry’s leading players while more than doubling revenues since 2012 and substantially improving technology and product offerings serving our customers’ ever-changing needs. We thank the entire ThermoSafe team for their years of delivering quality products and providing outstanding customer service on behalf of Sonoco. We know their knowledge, experience and leadership will be greatly valued by their new owner and wish the entire team continued success in the future.

Pro forma for the deal, net proceeds from the ThermoSafe sale excluding any additional consideration—are expected to lower Sonoco’s net leverage ratio to about 3.5x, based on Q2 total debt minus cash and expected proceeds, divided by the midpoint of 2025 adjusted EBITDA guidance excluding ThermoSafe’s contribution.

Source: - Sonoco