US packaging group Sonoco announced that the sales of its rigid plastics blow molding operations to Australia-based Amcor for US$280 million has been completed.
Sonoco's rigid plastics blow molding operations include seven manufacturing facilities in the US and Canada with 850 employees producing containers serving the personal care and food and beverage markets.
The disposition of these operations is expected to impact annual sales by approximately US$205 million. The reduction in sales is expected to impact Sonoco's fourth quarter 2016 and full year 2017 sales comparison by approximately US$30 million and US$175 million, respectively.
According to Jack Sanders, Sonoco President and CEO, the decision to sell the blow molding operations was made to focus the company's Consumer Packaging portfolio and provide resources to further expand its targeted growth businesses, including flexible packaging, thermoforming plastics and temperature-assurance packaging for transporting pharmaceuticals, biologics and vaccines.