US diversified packaging giant Sonoco (Hartsville, South Carolina; www.sonoco.com) has signed a definite agreement to acquire Germany’s Weidenhammer Packaging Group (Hockenheim; www.weidenhammer.de) for EUR 286m. The deal still has to meet regulatory approval and is expected to be completed in Q4 this year. Sonoco said the purchase of Weidenhammer, a leading composite can, drum and rigid plastic container manufacturer, will create a “global leader in rigid paper packaging.”

Weidenhammer’s 1,100 employees are spread across 13 production facilities, five of which are located in Germany. The remainder are situated in Belgium, France, Greece, The Netherlands, the UK, the US, Chile and Russia. Sonoco CEO M. Jack Sander said the takeover is expected to increase the US group’s net sales in Europe to about 21% of the total. All in all, the acquisition is expected to raise sales of Sonoco’s global consumer-related packaging and services business to USD 2.8 bn – which will amount to about 52% of total group revenue of USD 5.3 bn.

“Combining Weidenhammer's state-of-the-art production and technological capability places Sonoco in a leading position to provide its global consumer product customers with unparalleled packaging expertise throughout North America and Europe, and creates a strong presence in the emerging markets of Southeast Asia, China, Eastern Europe and South America,” Sanders said.

The German company produces composite cans, drums and luxury tubes and also injection moulds thin-walled rigid plastic containers. Among the key end market served by Weidenhammer are processed foods, powdered beverages, tobacco, confectionary, personal care, pet food and pharmaceuticals, among others. The company is expected to post sales of EUR 244m in 2014, with EBITDA projected to reach about EUR 42m.