Sonoco Spends Big: Shakes Up Metal Packaging with $3.9B Eviosys Deal
Portfolio Pulse from Lekha Gupta
Sonoco Products Company (NYSE:SON) has announced a $3.9 billion acquisition of Eviosys, a leading metal packaging manufacturer. The deal is expected to enhance Sonoco's global market position and is projected to close by the end of 2024. The acquisition will be financed through new debt and equity issuance, with plans to maintain an investment-grade credit rating. Sonoco anticipates significant synergies and a positive impact on earnings per share. The company also plans to divest ThermoSafe and other assets to generate $1 billion in proceeds.
June 24, 2024 | 1:29 pm
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POSITIVE IMPACT
Roundhill S&P Dividend Monarchs ETF (NYSE:KNGS) provides exposure to Sonoco, which has announced a $3.9 billion acquisition of Eviosys. The deal is expected to enhance Sonoco's market position and positively impact its earnings per share.
KNGS holds Sonoco, which is expected to benefit from the acquisition of Eviosys. The positive outlook for Sonoco's stock could translate into gains for KNGS.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
ProShares S&P MidCap 400 Dividend Aristocrats ETF (BATS:REGL) includes Sonoco, which has announced a $3.9 billion acquisition of Eviosys. The deal is expected to enhance Sonoco's market position and positively impact its earnings per share.
REGL holds Sonoco, which is expected to benefit from the acquisition of Eviosys. The positive outlook for Sonoco's stock could translate into gains for REGL.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
Sonoco's $3.9 billion acquisition of Eviosys is expected to enhance its global market position in metal packaging. The deal will be financed through new debt and equity issuance, with plans to maintain an investment-grade credit rating. Significant synergies and a positive impact on earnings per share are anticipated.
The acquisition of Eviosys is a strategic move for Sonoco, expected to enhance its market position and generate significant synergies. The financing plan and anticipated positive impact on earnings per share indicate a likely positive short-term impact on SON's stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100