Sonoco Spends Big: Shakes Up Metal Packaging with $3.9B Eviosys Deal
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 24 2024
0mins
Source: Benzinga
- Sonoco Acquisition of Eviosys: Sonoco Products Company is acquiring Eviosys for around $3.9 billion to enhance its metal packaging business.
- Deal Details: The transaction will be financed with new debt and equity issuance, aiming to maintain an investment-grade credit rating.
- Expected Benefits: Sonoco anticipates achieving over $100 million in synergies and significant revenue growth post-acquisition.
- Strategic Focus: The acquisition aligns with Sonoco's strategy to expand core operations globally and increase profitability through strategic acquisitions.
- Market Impact: The merger is set to position Sonoco as a major player in the global metal food can and aerosol packaging market, with projected long-term value creation.
Analyst Views on SON
Wall Street analysts forecast SON stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SON is 52.71 USD with a low forecast of 47.00 USD and a high forecast of 60.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
4 Buy
5 Hold
0 Sell
Moderate Buy
Current: 48.210
Low
47.00
Averages
52.71
High
60.00
Current: 48.210
Low
47.00
Averages
52.71
High
60.00
About SON
Sonoco Products Company is a global designer, developer, and manufacturer of a variety of highly engineered and sustainable packaging serving multiple end markets. Its segments include Consumer Packaging and Industrial Paper Packaging. Products within the Consumer Packaging segment consist of rigid packaging (paper, metal, and plastic), primarily serving the consumer staples market focused on food, beverage, household, personal, and pharmaceutical products. Its rigid paper containers are manufactured from 100% recycled paperboard provided primarily from Sonoco global paper operations. These paper products are primarily used in the food and beverage markets. Products within the Industrial Paper Packaging segment consist primarily of goods produced from recycled fiber including paperboard tubes, cores, cones and cans; partitions; paper-based protective materials, and uncoated recycled paperboard for high-end applications such as folding cartons, can board, and laminated structures.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
