Sonoco Products Company has agreed to sell its ThermoSafe business to Arsenal Capital Partners for up to $725m, with a base price of $650m and an additional $75m based on performance. The deal is expected to close by the end of 2025, completing Sonoco’s transition to a metal and fibre packaging leader.

ThermoSafe, based in Illinois, specializes in temperature-controlled packaging for pharmaceuticals and biologics, reporting over $240m in sales and $50m in EBITDA in 2024. The sale will reduce Sonoco’s net leverage ratio and enhance its focus on sustainable growth and customer value.

Morgan Stanley & Co advised Sonoco on the deal, with legal assistance from Freshfields. Arsenal received legal counsel from Kirkland & Ellis. Sonoco’s president, Howard Coker, highlighted the company’s successful transformation and the growth of ThermoSafe over the years.

Sonoco announced a $30m investment in its Orlando facility to expand adhesives and sealants production, furthering its commitment to innovation and growth. The sale of ThermoSafe marks a strategic move for Sonoco, reinforcing its position as a global packaging leader.

Read more at Yahoo Finance: Sonoco to sell ThermoSafe unit for up to $725m