Sonoco acquires Clear Lam Packaging

Sonoco acquires Clear Lam Packaging
Purchase will see Sonoco further expand into flexible packaging and thermoforming plastics

Packaging giant Sonoco has signed a deal acquiring 100 per cent of flexible and forming plastic packaging company Clear Lam Packaging for $170m.

The transaction is expected to close towards the end of this year. Clear Lam has a manufacturing facility in Nanjing, China.

Jack Sanders, Sonoco president and chief executive officer says the acquisition of Clear Lam will further build on Sonoco's strategy of expanding its global Flexible Packaging and Thermoforming Plastics operations to provide offerings serving the fast-growing perimeter of grocery and retail food stores.

Sanders says, "The addition of Clear Lam will significantly expand our Flexible Packaging and Thermoforming Plastics operations as we will be able to develop, produce and convert high barrier flexible and forming film structures to package fresh and prepared food products purchased in the growing store perimeter.

"As an example, Clear Lam complements our recent acquisition of Peninsula Packaging's thermoforming operations by being able to produce barrier flexible film lidding that extends shelf life, is resealable and provides a complete packaging solution to our fresh fruit and vegetable customers."

James Sanfilippo, packaging president, Clean Lam says, "We are excited to become part of the Sonoco family. I see the two companies with similar cultures, focused on building strong relationships with employees, customers and suppliers. Innovation has always been a driving force within Clear Lam and Sonoco, and it will continue to be a foundation for further growth."

Clear Lam develops, produces and converts high barrier flexible and forming films used to package a variety of products for consumer packaged goods companies, retailers and other industrial manufacturers, with a focus on structures used for perishable foods.

Clear Lam serves markets including condiments, dairy, meats and cheese, produce, confection, fresh and prepared foods, nuts and snacks, food service and personal care.

Rob Tiede, executive VP and COO, Sonoco says the addition of Clear Lam provides significant technology advantages as well as being able to drive synergies through the internalisation of materials for Sonoco's existing flexible and thermoforming customers.

"What attracted us to Clear Lam was its reputation for driving high-barrier film packaging innovations to meet changing consumer needs. 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.

 "Additionally, in recent years, 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, special drinking pouch films and several new packaging films that expand shelf life." 

Rothschild & Co acted as exclusive financial advisor to Clear Lam on this transaction.

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