Sonoco signs US$210 million agreement to acquire Ont. packaging company
Global packaging company Sonoco has signed a definitive agreement to acquire Mississauga, Ont.-based Matrix Packagi...
Global packaging company Sonoco has signed a definitive agreement to acquire Mississauga, Ont.-based Matrix Packaging, Inc. for an all-cash purchase price of approximately US$210 million. Matrix is a leading manufacturer of custom designed blow molded rigid plastic containers and injection molded products.
The acquisition is still subject to regulatory approval, and the transaction is expected to close by the end of June 2007. Sonoco expects the acquisition to generate sales of approximately US$140 million on an annualized basis.
“The addition of Matrix will transform our current rigid plastic container business, both in size and in scope as we will have a better balance in serving both the food and drink and personal care markets,” said Sonoco chairman, president and CEO Harris E. DeLoach, Jr. “Matrix has grown rapidly in just 15 years by investing in state-of-the-art technology and advanced equipment that provide its customers with innovation, flexibility and quality.”
Founded in 1992, Matrix has six manufacturing facilities in the US and Canada, and employs approximately 860 people. The company produces mono- and multi-layer rigid plastic containers utilizing a number of plastic materials. Matrix also offers full-service decorating and component assembly capabilities for its clients, including silk-screen printing, pressure sensitive and heat transfer labeling.
DeLoach noted that he would retain Matrix’s management team in order to continue to grow the business. Matrix president and CEO Pushminder Judge will be a member of Sonocos management committee.
“I am excited about the benefits that the partnership with Sonoco brings our customers and employees,” said Judge. “We believe the acquisition presents an attractive opportunity to serve our customers’ packaging needs in new product categories and new geographic markets.”