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Sonoco Acquires Eviosys from KPS in USD3.9bn Deal

Sonoco, which makes containers for brands including Pringles, will pay $3.9bn for Eviosys.

KPS Capital Partners has agreed to sell its Eviosys packaging business to Sonoco Products for USD3.9bn. This transaction, announced on Monday, will generate nearly USD2bn in returns for KPS, marking a significant windfall amid the current market conditions.

Eviosys, which specializes in aluminium containers for aerosols and food items, was acquired by KPS in 2021 for USD2.7bn. This acquisition was part of a larger trend during a peak period for private equity buyouts, when interest rates were low.

Sonoco Products, a long-standing South Carolina-based manufacturer known for products such as Pringles chips containers and Bush’s Best baked beans, has continued its strategic realignment under CEO Howard Coker. The company has recently divested business lines focused on recycling and industrial foam to streamline its operations.

KPS managed to increase Eviosys’ profitability by about 50% and found a strategic buyer in Sonoco. Despite the broader private equity market facing challenges due to rising interest rates and a backlog of unsold deals, KPS has maintained its deal-making momentum. The firm, which manages over USD21bn in assets, recently closed a USD9.7bn fundraising and has been active in acquiring non-core industrial business lines from larger conglomerates.

In recent months, KPS has also agreed to acquire Innomotics from Siemens for USD3.8bn, alongside other significant industrial deals.