Sonoco Buys Clear Lam Packaging
Major US packaging company Sonoco has agreed to buy Clear Lam Packaging for about $170 million in cash. The transaction, which is subject to regulatory approval, is expected to close in the third quarter of 2017.
The family-owned company based in Elk Grove Village, Illinois, develops and manufactures high barrier flexible and forming films for packaging various products, with a focus on perishable foods. Clear Lam operates two plants, one in Elk Grove Village and the other in Nanjing, China, and employs nearly 400 people. Sales of around $140 million are projected for 2017.
Rob Tiede, Sonoco’s executive vice president and chief operating officer, said the addition of Clear Lam provides significant technology advantages. “We’re especially interested in opportunities to leverage their expertise in modified atmosphere packaging, which comes from a strong base of material science knowledge when it comes to films, additives and adhesives,” he said.
Sonoco’s president and CEO, Jack Sanders, added that the acquisition will further build on the company’s strategy of expanding its global flexible packaging and thermoforming plastics operations to serve fast-growing demand from grocery and retail food stores. He noted that Clear Lam complements Sonoco’s acquisition of Peninsula Packaging, which completed in March.
Peninsula, which had 2016 pro forma sales of around $190 million, operates five manufacturing facilities, in Exeter and Hollister, California; Wilson, North Carolina; Yakima, Washington and Guadalajara, Mexico.
