Sonoco Products Company has announced that it will acquire Eviosys, a European metal packaging leader, for $3.9bn.

This move strengthens Sonoco's position as one of the world's top manufacturers of metal food cans and aerosol packaging.

The acquisition aligns with Sonoco's strategy to focus on its core businesses and invest in high-growth opportunities.

By combining Sonoco's existing US presence with Eviosys' dominance in Europe, the company said the deal expands its reach into a $25bn global metal packaging market.

Sonoco expects significant benefits from the acquisition.

Specifically, the company anticipates more than $100m in annual synergies through optimised sourcing, supply chain improvements, and operational efficiencies.

Additionally, the deal is expected to be immediately profitable for Sonoco, boosting its earnings per share and generating a strong return on investment.

To maintain its investment-grade credit rating, Sonoco plans to finance the acquisition with a combination of new debt, divestitures, and a potential $500m equity offering.

Importantly, Sonoco intends to divest its non-core businesses, including its temperature-assured packaging unit ThermoSafe, to generate at least $1bn and achieve a leverage ratio below 3.0 within two years.

Sonoco and Eviosys share a commitment to sustainability, and the combined company aims to accelerate environmentally friendly practices across its operations.

The acquisition is subject to regulatory approvals and is expected to close by the end of 2024.

Eviosys' CEO, Tomas Lopez, will join Sonoco to lead the company's European metal packaging business.

The deal positions Sonoco as a dominant force in the global metal packaging industry.

The combined company will boast a broader geographic reach, operational efficiencies, and a commitment to sustainable practices, making it a strong partner for consumer brands worldwide.