Packaging company Sonoco Products to buy rival Tegrant for $550 million

One of the largest diversified global packaging companies, Sonoco Products Co, is buying Tegrant Corp from private equity firm Metalmark Capital, for $550 million, in its largest acquisition to date.

Illinois-based Tegrant is a leading provider of highly engineered protective, temperature-assured and retail security packaging solutions. It operates in three strategic business units, Protexic Brands, its largest business unit, is North America's premier manufacturer of moulded expanded foam used in a number of industries, including high technology, consumer electronics, automotive, appliances and medical devices.

Tegrant's ThermoSafe Brands unit is the world's leading provider of temperature-assured solutions, primarily used in packaging temperature-sensitive pharmaceuticals and food and Tegrant's Alloyd Brands business unit is a leading manufacturer and designer of high-visibility packaging, printed products and blister packaging machines for retail and medical markets.

The company operates more than 30 manufacturing, design and testing facilities in the US, Mexico and Ireland and employs more than 2,000 people.

According to Harris DeLoach, Jr., Sonoco chairman and CEO, the acquisition of Tegrant is the largest in Sonoco's history and will create a North American leader in multimaterial protective packaging.

Tegrant is projected to generate 2011 sales of approximately $440 million. When combined, Sonoco is projected to generate sales of approximately $5 billion in 2012 and approximately $11 million in synergies.