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Investigation launched into $3.9bn acquisition of food packaging manufacturer
The deal was publicly announced in June, with US packaging giant Sonoco looking to add to its European portfolio with the addition of Eviosys from KPS Capital Partners.
Eviosys specialises in the production of food cans, ends and closures, and operates 44 manufacturing facilities across 17 countries, including an R&D centre in Wantage, Oxfordshire.
However, the CMA has now launched an investigation in order to assess whether the merging of the two businesses will reduce competition within the UK packaging market.
Between 24 October and 7 November, interested parties have been ‘invited to comment’ on the transaction, with a phase 1 decision scheduled to be announced on 19 December.
Speaking when the deal was announced, Sonoco president and CEO Howard Coker said: “The acquisition of Eviosys establishes our global leadership in metal food can and aerosol packaging, marking an exciting milestone in our strategy to scale our core strategic metal packaging platform and position Sonoco for long-term value creation.
“Eviosys brings extensive global reach and an attractive, growing customer base that perfectly complements our existing metal packaging offering. Together with the talented team at Eviosys, we are focused on unlocking new opportunities in attractive end-markets, providing our customers with a stronger value proposition and generating strong returns for our shareholders.”
Meanwhile, Eviosys chief executive Tomas Lopez said that the firm hoped to bring its “high-quality, sustainable and innovative packaging solutions” to new and existing customers around the globe by combining with Sonoco.
“For over 200 years, we have provided best-in-class metal packaging that enhances the appeal of our customers’ brands,” continued Lopez.
“Our companies share a strong commitment to providing the highest levels of customer service, safety for our employees, and operating efficiencies, and I look forward to joining the incredibly talented team at Sonoco as we work to deliver the benefits of this acquisition to all our stakeholders.”
Food Manufacture visited Eviosys’ relaunched UK R&D centre in November 2023 to learn more about the firm’s mission to become the food industry’s sustainable packaging partner of choice.
