£2.6 million Sonoco acquisition of Robinson Paperboard Packaging finalised

The UK arm of NYSE listed Sonoco has completed the acquisition Robinson Paperboard Packaging Ltd, in a deal worth £2.6 million.

Sonoco is a global packaging company with diversified interests, and has taken on Robinson Paperboard Packaging Ltd from its parent company, London Stock Exchange-listed Robinson PLC.

Robinson has sold its composite can manufacturing business to focus on its plastic packaging activities, as its Chesterfield factory has not made a profit for over 5 years, despite accounting for around a quarter of the company's turnover (£25 million).

All Robinson staff will move over to Sonoco, which now employs over 600 people in 10 UK plants. As part of the contract, Sonoco will lease the factory site for 15 years, rent free for the first two years. After this it will pay £450k p/a, or can buy the property in full at some point in the next two years.

Sonoco will gain around $10 million in sales, contracts and assets from Robinson Paperboard Packaging, which manufactures rigid paperboard tubes and boxes for the food and beverage, personal care and giftwrap markets.

Robinson and Sonoco will still work together to a degree, as Robinson supplies the plastic overcaps for use with its paperboard products,

General Manager of Sonoco Rigid Paper and Closures, Europe, Sean Cairns, commented:

"The purchase of Robinson Paperboard Packaging is a good strategic fit with Sonoco's growing global rigid paper container operations. We believe Robinson's proven expertise in innovative paper bottom technology and unique, patented processes provide a strong platform for our continued development and growth in the United Kingdom and Europe."

Author: Lee Marriott, Analyst