Sonoco grows healthcare packaging footprint with thermoformer acquisition
The global packaging supplier is purchasing Thermoform Engineered Quality LLC and Plastique Holdings Ltd. for $187 million.
November 19, 2019 by Canadian Plastics
Global packaging supplier Sonoco is acquiring Thermoform Engineered Quality LLC and Plastique Holdings Ltd. (together TEQ), a manufacturer of thermoformed packaging serving the healthcare, medical device and consumer markets, from Esco Technologies Inc. for approximately US$187 million in cash.
TEQ, headquartered in Huntley, Ill., operates three thermoforming and extrusion facilities in the U.S. along with a thermoforming operation in the United Kingdom, and thermoforming and molded-fibre manufacturing in Poland.
In addition, TEQ produces recyclable, molded-pulp-fiber packaging and thermoformed plastic packaging for multiple consumer products primarily in Europe.
“Recent studies value the global healthcare packaging market at approximately $33 billion, with healthy growth expected for the future,” Rob Tiede, Sonoco president and CEO, said in a statement. “TEQ provides a strong platform to further expand Sonoco’s growing healthcare packaging business”.
“The U.S. and Europe will remain the largest consumers of healthcare packaging as new sophisticated therapies with specialized packaging needs continue to be introduced,” TEQ president Randy Loga said. “TEQ’s history of growth mirrors the growth in healthcare spending and medical device utilization, and we look forward to joining Sonoco in further expanding our capabilities to meet our customers’ future needs.”
The acquisition is expected to be completed by the end of 2019. There are no planned changes in TEQ’s leadership or customer relationships, Sonoco said.
Sonoco is headquartered in Hartsville, S.C.