Sonoco snaps up Robinson paperboard ops to boost Euro foot-print
Sonoco has completed the takeover of UK-based Robinson Paperboard Packaging for £2.6m in a bid to expand its paperboard container presence in Europe.
Sonoco has completed the takeover of UK-based Robinson Paperboard Packaging for £2.6m in a bid to expand its paperboard container presence in Europe.
The US-based giant said the acquisition of the company, which is part of the Robinson Group, would add around US$10m in annual sales to its balance sheet.
The UK company manufactures paperboard tube and rigid box products, mainly for the food and beverage sectors but also for the cosmetics and toiletries industries. It packaging products are used across the confectionery, biscuit, baking and beverage segment, as well for dried foods, hygroscopic powders.
In 2010, the Robinson Group posted revenues of just under £25m and an operating profit of £2.7m. The company said today it would use the cash from the sale to reduce its bank debt.
Robinson said it closed its North American paperboard business in December 2010 “following losses driven largely by the relative strength of the Canadian dollar and weak US demand”.
Its UK operations, which manufacture spirally-would paperboard containers, were also loss making, due in part to Sonoco’s dominance in the market.
Robinson CEO Adam Formela said the deal would allow the company to focus on developing its plastics businesses in UK and Poland.
Customer contracts
Sonoco announced the buyout had been completed by its wholly-owned UK subsidiary and included all assets of the packaging outfit- including customer contracts. All staff at Robinson’s 15,000m2 facility in Chesterfield, in the north of England, would be retained, said Sonoco in a statement.
Robinson CEO Adam Formela said that Sonoco had taken a 15 year lease over the business's site and factory buildings at Goyt Side Road. Following a two-year rent free period it will pay rental fees of £0.45m per annum. Sonoco also has an option to purchase the property within the next two years at a fixed price.
"The purchase of Robinson Paperboard Packaging is a good strategic fit with Sonoco's growing global rigid paper container operations," said Sean Cairns, general manager of Sonoco Rigid Paper and Closures, Europe. "We believe Robinson's proven expertise in innovative paper bottom technology and unique, patented processes provide a strong platform for our continued development and growth in the United Kingdom and Europe."
Sonoco said it would continue to work with other parts of Robinson, including its plastics packaging division for the supply of plastic overcaps.
Source: Sonoco
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