Sonoco buys packaging maker Tegrant Corp.

In a move to increase its access to new markets, packaging products supplier Sonoco Products Co. is making the largest acquisition in its history, purchasing packaging maker Tegrant Corp. for US$550 million in cash.

DeKalb, Ill.-based Tegrant’s products include protective, temperature-controlled packaging for food and pharmaceutical products.

 In a news release, Hartsville, S.C.-based Sonoco noted that buying Tegrant will give it access to markets for medical devices, pharmaceuticals and health and beauty products, which it said are faster growing industries. The purchase will also expand its presence in the industrial components and automotive markets, the company said. “The addition of Tegrant and its family of businesses significantly advances Sonoco as a protective packaging solutions leader and greatly expands the products, services and capabilities we can offer our customers,” said Harris DeLoach, Sonoco’s chairman and CEO.

DeLoach also said that Tegrant’s president and CEO, Ron Leach, has agreed to stay with Sonoco and continue leading Tegrant’s businesses.

Tegrant is currently owned by private equity firm Metalmark Capital.

Tegrant is forecast to generate sales this year of US$440 million. When combined, the companies are forecast to produce total 2012 sales of US$5 billion, Sonoco said.

The deal is expected to close in November 2011.