Highland is a privately-owned producer of thermoformed plastic packaging for fresh produce and dairy products, based in Plant City, Florida.
The transaction is subject to normal regulatory review and is expected to close in the second quarter of 2018.
Highland, which has 435 employees, has grown from a regional supplier of agriculture packaging products into a global packaging company with 2017 net sales of approximately $90m.
Rob C. Tiede, Sonoco’s executive vice president, chief operating officer and CEO-elect, said, “We are extremely excited to have Highland join the Sonoco family as it significantly strengthens our Perimeter of the Store strategy, serving consumers’ growing demand for fresh and natural foods.”
Financial results
Tiede said the acquisition of Highland, which had revenues of $90m in 2017, will be accretive to earnings in 2018, and the purchase price represents an EBITDA multiple of approximately 6.5 times post-synergies and tax benefits from the write-up of intangibles.
Highland CEO Steve Maxwell, Highland president John Baird and many of Highland’s leadership, sales and operations teams will remain, and Highland expects no changes in customer relationships.
When the transaction is completed, Highland’s financial results will be reported within Sonoco’s consumer packaging segment and the business will be operated as part of Sonoco’s global plastics operations.