Global packaging company Sonoco has announced that it has acquired Germany-based Weidenhammer Packaging Group for $360m (€286m) in cash.
Weidenhammer specializes in producing composite cans along with composite drums and rigid plastic containers.
Sonoco carried out the transaction with the help of a credit agreement for a new $600m bank credit facility.
This facility also includes a new $350m five-year revolving credit facility which is being used to support an identically sized commercial paper program.
The agreement also included a new $250m three-year term loan which helped the company to sponsor the acquisition.
Speaking about the acquisition, Sonoco president and chief executive officer M Jack Sanders said: "The acquisition creates a global leader in rigid paper packaging and is expected to increase Sonoco's combined global consumer-related packaging and services business to approximately $2.8bn in annual sales or approximately 53% of the company's combined revenue of approximately $5.4bn.
"In addition, the combination is expected to increase Sonoco's net sales in Europe to approximately 21 percent of total sales."
Weidenhammer currently employs about 1,100 employees and operates 13 production facilities of which five are in Germany.
It also operates individual plants in Belgium, France, Greece, Netherlands, the UK, the US, Chile and Russia.
Apart from manufacturing composite cans, drums and luxury tubes, Weidenhammer also produces rigid plastic containers using thin-walled injection molding technology with in-mold labeling.
Previously, the company had also stated that the acquisition of Weidenhammer would have no material impact on Sonoco's fourth quarter 2014 base earnings.
Operating about 340 facilities in 34 countries, Sonoco has reported annual sales of approximately $5.4bn.
