US-based packaging company Sonoco will acquire a majority interest in Brazilian flexible packaging business Graffo Paranaense de Embalagens for an undisclosed amount.
Located in Pinhais, Curitiba, Graffo specialises in producing flexible packaging for the confectionery, dairy, pharmaceutical and industrial markets in Brazil. It operates high-quality rotogravure printing presses, including a new 10-color press along with lamination applications.
Founded in 2001 with 1,500m2 plant and six employees, Graffo currently employs close to 230 people in its 12.500m2 plant with $35m in annual sales in 2014.
Sonoco will be acquiring a two-thirds stake in Graffo. The transaction is expected to complete in the second quarter of 2015.
Speaking about the deal, Sonoco president and CEO Jack Sanders said: "We're extremely pleased to join Graffo with Sonoco's growing global flexible packaging business.
"We were looking to invest jointly in Brazil with a partner who has strong technical capabilities and established relationships with both large global consumer product companies and growing local businesses, where we could bring our customer relationships and technical capabilities to grow our presence in this important emerging market."
Sonoco that was founded in 1899, provides a variety of consumer packaging, industrial products, protective packaging and displays and packaging supply chain services.
Headquartered in Hartsville, South Carolina, the company has annual net sales of approximately $5bn and employs around 20,800 employees across its 330 operations in 34 countries.
Sonoco specializes in producing composite cans, tubes, and cores. It also produces blow-molded plastic containers, consumer and industrial thermoformed plastic packaging, engineered molded and extruded plastic products, rigid paperboard containers and convenience closures.
