US-based packaging firm Sonoco has completed its purchase of flexible and forming plastic packaging films manufacturer Clear Lam Packaging for about $170m.
Clear Lam Packaging, which was established in 1969, operates manufacturing plants across Elk Grove Village, Illionis, US, and Nanjing, China.
The company, which employs over 400 people, estimates to generate about $140m of sales in 2017.
The company manufactures high barrier flexible and forming films for retailers and consumer packaged goods firms to pack perishable foods.
Clear Lam President and CEO James Sanfilipo and its management team’s staff will remain with the firm, and its financial results will be accretive to Consumer Packaging division of Sonoco.
The existing credit facilities, that also has a new $750m bank credit facility, will be used by Sonoco to finance the transaction.
The facility also includes a five-year revolving credit facility, $500m, which will support the firm’s current $350m commercial paper program.
Additionally, $250m is included to clear a current loan of $150m and to partly contribute to the acquisition with the remaining $150m.
Sonoco executive vice president and COO Rob Tiede said: "Clear Lam has developed new portion-control condiment packaging, peel-reseal films for fresh fruits and vegetables, forming films for healthy yogurts, lidding films for fresh guacamole and several new packaging films that expand shelf life.
“The addition of their portfolio and technical capabilities for producing multi-layer film structures enhances and expands our ability to serve the rapidly growing perimeter of supermarkets in fresh food products, while driving synergies through the internalization of materials for Sonoco’s existing flexible and thermoforming customers.”
