Sonoco Products Company completes the divestment of ThermoSafe business unit to Arsenal Capital Partners for $725m. The deal includes $650m paid at closing and up to $75m contingent on meeting performance targets by 2025. Sonoco plans to use net proceeds to repay existing borrowings, lowering net leverage ratio to around 3.4 times.

ThermoSafe, a leading temperature assurance technology supplier based in Illinois, reported sales exceeding $240m and $50m in proforma adjusted EBITDA in 2024. The business offers parcel shippers, bulk, and reusable solutions for pharmaceutical and healthcare product transport. Sonoco expressed pride in building ThermoSafe into an industry leader.

Sonoco president and CEO Howard Coker highlighted the completion of the ThermoSafe sale as a milestone in the company’s portfolio transformation. Morgan Stanley & Co. advised Sonoco on the financial aspects of the deal, while Freshfields provided legal counsel. Arsenal Capital Partners received financial advice from Raymond James and legal representation from Kirkland & Ellis.

Read more at Yahoo Finance: Sonoco concludes $725m divestment of ThermoSafe unit