HARTSVILLE, S.C. — Sonoco Products Company has completed the sale of its ThermoSafe cold chain packaging business unit to Arsenal Capital Partners for a total purchase price of up to $725 million, marking a major step in the company’s ongoing portfolio transformation.
The transaction includes $650 million paid at closing on a cash-free, debt-free basis, with an additional $75 million in potential consideration tied to 2025 performance metrics. Sonoco said it will use the net proceeds to reduce existing debt.
A Strategic Refocus for Sonoco
Sonoco President and CEO Howard Coker said the deal aligns with the company’s shift toward simplifying its structure around two core global businesses: metal and paper-based consumer and industrial packaging.
“The completion of the sale of ThermoSafe substantially concludes Sonoco’s portfolio transformation, which simplified our operations from a large portfolio of businesses into two core global business segments focused on metal and paper consumer and industrial packaging,” Coker said. “Sonoco is proud of what we have accomplished in building ThermoSafe into one of the industry’s leading players. We thank the entire ThermoSafe team for their dedication and wish them and their new owners continued success in the future.”
Following the transaction, Sonoco expects its net leverage ratio to decrease to approximately 3.4x, excluding any future earnout payment.
ThermoSafe: A Key Player in Cold-Chain Packaging
ThermoSafe is widely recognized for its portfolio of temperature-assurance systems used in the transport of pharmaceuticals, vaccines, biologics, and other healthcare products. Offerings span parcel shippers, bulk and reusable solutions, as well as engineering, testing, qualification, and validation services through its ISC Labs® division.
New Ownership under Arsenal Capital Partners
Arsenal Capital Partners, which focuses on industrial growth and healthcare businesses, has raised over $10 billion in institutional equity since its founding in 2000 and has completed more than 300 platform and add-on acquisitions. The firm said it aims to support ThermoSafe’s continued expansion in high-growth, high-value cold-chain markets.
Advisors
Morgan Stanley served as financial advisor to Sonoco, with Freshfields LLP as legal counsel. Arsenal was advised by Raymond James and represented legally by Kirkland & Ellis LLP.
About the Companies
Sonoco, founded in 1899, operates 285 facilities in 40 countries and is a major global supplier of sustainable metal and fiber packaging solutions.
ThermoSafe provides temperature-controlled packaging systems and regulatory support to leading life-sciences companies.
Arsenal Capital Partners is a private equity firm specializing in industrial and healthcare businesses.
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Rick LeBlanc, EMBA, is the founder and editor of Reusable Packaging News (subscribe to the free newsletter) and editor of Western Pallet Magazine. A supply chain journalist with more than 30 years of experience, he specializes in pallets, reusable packaging, material handling and related operations. Rick is co-author of Pallets: A North American Perspective and Pallets & Progress: A Collected History of Pallets and Palletized Handling 1922–1945. He is also an advisory board member of the Virginia Tech Center for Packaging and Unit Load Design. Read Rick’s full bio.
