Sonoco Products Co., a leading provider of consumer packaging solutions has announced that it has entered into a definitive agreement to sell its thermoformed and flexibles packaging (TFP) business to Tokyo-based Toppan Holdings Inc. for approximately $1.8 billion in cash.

The sale, expected to close in the first half of 2025, marks a significant step in Sonoco's ongoing portfolio simplification strategy. Proceeds from the transaction will be primarily used to reduce existing debt.

"This transaction reflects the successful completion of our strategic review of the TFP business," said Howard Coker, Sonoco's president and CEO. "We believe this divestiture will allow us to concentrate our resources and investments on our core industrial paper and consumer packaging businesses."

Sonoco's TFP business serves a diverse range of customers across the food, retail, and medical industries. It offers a wide array of complex packaging solutions for products such as snacks, condiments, healthcare items, prepared meals, fresh produce, coffee, and pet food.

Toppan, a global leader in printing, communications, and security solutions, views the acquisition as a strategic move to expand its presence in the sustainable packaging market.

"We are excited to welcome Sonoco's TFP business to the Toppan Group," said Hideharu Maro, representative director, president, and CEO of Toppan Holdings. "This combination will leverage TFP's strong North and South American footprint and customer relationships with Toppan's global reach and expertise in sustainable packaging solutions."

The acquisition is expected to enhance Toppan's ability to meet the evolving needs of brand owners by providing a more comprehensive range of packaging options and a strengthened global supply chain.

Sonoco Packaging is a global leader in innovative, sustainable packaging solutions, offering products such as rigid containers, flexible packaging, and molded fiber. With a strong focus on sustainability, the company prioritizes recycling, waste reduction, and the use of eco-friendly materials. Sonoco serves diverse industries, including food, pharmaceuticals, and electronics. Through continuous innovation and research, Sonoco remains a trusted partner, driving growth and promoting sustainability in the packaging industry worldwide.

Toppan is a global leader in printing and packaging, specializing in advanced solutions such as digital printing, security printing, and packaging for various industries, including electronics, automotive, and consumer goods. Founded in Japan, Toppan has expanded its presence worldwide, offering products ranging from decorative materials to high-performance electronics and packaging. The company is known for its focus on innovation, sustainability, and creating value through technology, with a strong commitment to environmental responsibility and customer satisfaction.