NEW YORK, June 24, 2024 /PRNewswire/ -- KPS Capital
Partners, LP ("KPS") announced today that it has entered into an
agreement for its portfolio company, Eviosys (the "Company"), to be
sold to Sonoco Products Company ("Sonoco", NYSE: SON), a
Hartsville, South Carolina-based
global leader in high-value sustainable packaging, for €3.615
billion (or approximately $3.9
billion). Sonoco has the option, under certain
circumstances, to pay up to $200
million of the purchase consideration in the form of Sonoco
stock. The transaction is expected to close by the end of 2024, and
is subject to completion of required works council consultations
and the receipt of required regulatory approvals and other
customary closing conditions.
Eviosys is a leading global supplier of metal packaging,
producing food cans and ends, aerosol cans, metal closures and
promotional packaging to preserve the products of hundreds of
consumer brands. Eviosys has the largest metal food can
manufacturing footprint in the EMEA region, with over 6,300
employees in 44 manufacturing facilities across 17 countries in
Europe, the Middle East and Africa. Eviosys is a global leader in
sustainability, with a product portfolio comprised entirely of
infinitely recyclable metal packaging and industry-leading
performance across a broad spectrum of sustainability metrics.
KPS created Eviosys to acquire Crown Holdings, Inc.'s ("Crown",
NYSE: CCK) EMEA Food and Consumer Packaging Business in
August 2021 in a highly complex
global corporate carve-out transaction. Crown retained a 20%
ownership interest in Eviosys. KPS assembled an accomplished
management team, led by Chief Executive Officer Tomás López, to
lead the transformation of Eviosys into one of Europe's largest and most profitable packaging
companies. In under three years of ownership, KPS, in partnership
with management, successfully transformed Eviosys into a fully
independent and significantly more profitable company focused on
growth, innovation and sustainability.
KPS and Eviosys' management team structurally improved the
strategic position and competitiveness of Eviosys, resulting in an
approximate 50% improvement in profitability in under three years
of KPS ownership. KPS invested nearly €225 million in capital
expenditures and significant resources to execute a comprehensive
business transformation plan focused on optimizing Eviosys'
manufacturing footprint to drive asset utilization, reducing
operational costs and growing volumes in new and existing
geographies. Eviosys made remarkable progress in advancing its
sustainability objectives, surpassing its publicly committed
greenhouse gas emissions reductions targets and achieving an
EcoVadis Platinum rating in 2023, placing it in the top 1% of all
companies ranked by EcoVadis. Eviosys today is a thriving,
independent company providing its customers with innovative and
sustainable metal packaging solutions at the highest standards for
quality and at scale.
Michael Psaros, Co-Founder and
Co-Managing Partner of KPS, said, "Eviosys is another demonstration
of KPS' investment strategy of seeing value where others do not,
buying right and making businesses better, across economic cycles,
geographies and industries over decades.
We are proud of Eviosys' extraordinary transformation under our
ownership. Eviosys demonstrates our ability to build
industry-leading companies on a global basis. The Company's success
is a direct result of KPS' commitment to, and investment in, the
Company's R&D, innovative new technologies and products,
manufacturing facilities and people. We believe the acquisition of
Eviosys by Sonoco will benefit the combined companies' customers,
employees and investors. The industrial logic is compelling.
We congratulate and thank Tomás López, Eviosys' Chief Executive
Officer, along with the Company's senior management team, for their
strategic vision and brilliant execution, which resulted in
tremendous value creation under KPS' ownership in a short period of
time. We also thank Crown for being a highly constructive and
supportive partner."
Tomás López, Chief Executive Officer of Eviosys, added, "For
over 200 years, Eviosys and its predecessor companies have provided
best-in-class metal packaging that enhances the appeal of our
customers' brands. KPS recognized the investment opportunity and
upside presented by Eviosys. KPS' extensive manufacturing expertise
and experience provided us with the plan and resources that
resulted in enormous value creation. We thank KPS for creating
a culture in our company focused on continuous improvement,
manufacturing excellence and environmental stewardship. We are
proud of our people, products and service. By combining with
Sonoco, we will work to bring our high quality, sustainable and
innovative packaging solutions to new and existing customers around
the globe. Our companies share a strong commitment to providing the
highest levels of customer service, safety for our employees, and
operating efficiencies."
Rothschild & Co is serving as sole financial advisor and
Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as
legal counsel to KPS and Eviosys. Morgan Stanley & Co. LLC and
J.P. Morgan Securities LLC are serving as financial advisors to
Sonoco and Freshfields Bruckhaus Deringer LLP is serving as
Sonoco's legal counsel.
About Eviosys
Eviosys is a leading global supplier of
metal packaging, producing food cans and ends, aerosol cans, metal
closures and promotional packaging to preserve the products of
hundreds of consumer brands. Eviosys has the largest metal food can
manufacturing footprint in the EMEA region, with over 6,300
employees in 44 manufacturing facilities across 17 countries in
Europe, the Middle East and Africa. Eviosys is a global leader in
sustainability, with a product portfolio comprised entirely of
infinitely recyclable metal packaging and industry-leading
performance across a broad spectrum of sustainability metrics. To
learn more, visit www.eviosys.com.
About KPS Capital Partners, LP
KPS, through its
affiliated management entities, is the manager of the KPS Special
Situations Funds, a family of investment funds with approximately
$21.6 billion of assets under
management (as of March 31, 2024).
For over three decades, the Partners of KPS have worked exclusively
to realize significant capital appreciation by making controlling
equity investments in manufacturing and industrial companies across
a diverse array of industries, including basic materials, branded
consumer, healthcare and luxury products, automotive parts, capital
equipment and general manufacturing. KPS creates value for its
investors by working constructively with talented management teams
to make businesses better and generates investment returns by
structurally improving the strategic position, competitiveness and
profitability of its portfolio companies, rather than primarily
relying on financial leverage. The KPS Funds' portfolio companies
generate aggregate annual revenues of approximately $19.6 billion, operate 223 manufacturing
facilities in 26 countries, and have approximately 47,000
employees, directly and through joint ventures worldwide (as of
March 31, 2024). The KPS
investment strategy and portfolio companies are described in detail
at www.kpsfund.com.
About Sonoco
With net sales of approximately $6.8
billion in 2023, Sonoco has approximately 22,000
employees working in more than 300 operations around the world,
serving some of the world's best-known brands. With our corporate
purpose of Better Packaging. Better
Life., Sonoco is committed to creating sustainable
products and a better world for our customers, employees, and
communities. Sonoco was named one of America's Most
Responsible Companies by Newsweek. For more information on the
Company, visit our website at www.sonoco.com.
Forward-Looking Statements
This presses release
contains "forward-looking statements", including statements
regarding the contemplated transaction. Forward-looking statements
can generally be identified by the use of words such as
"anticipate," "believe," "continue," "could," "estimate," "expect,"
"forecast," "intend," "may," "plan," "project," "potential,"
"seek," "should," "think," "will," "would" and similar expressions,
or they may use future dates. Forward-looking statements in
this document include, without limitation, statements regarding the
Company's expectations as to the completion and timing of the
contemplated transaction, including with respect to works council
consultations, regulatory approvals and the satisfaction of other
closing conditions, and the anticipated impacts of the contemplated
transaction. These forward-looking statements are subject to
assumptions, risks and uncertainties that may change at any time,
and readers are therefore cautioned that actual results could
differ materially from those expressed in any forward-looking
statements. Factors that could cause actual results to differ
include, among other things: the occurrence of any event, change or
other circumstances that could give rise to the termination of the
definitive agreement or could otherwise cause the transactions
contemplated therein to fail to close; the inability of the Company
or Sonoco to satisfy the conditions to closing; and other risks and
uncertainties. The Company undertakes no obligation to update
any forward-looking statements as a result of new information,
future developments or otherwise, except as expressly required by
law. All forward-looking statements in this document are
qualified in their entirety by this cautionary statement.
Statements By Portfolio Company Executives
Certain statements about KPS made by portfolio company
executives herein are intended to illustrate KPS' business
relationship with such persons, including with respect to KPS'
facilities as a business partner, rather than KPS' capabilities or
expertise with respect to investment advisory services. Portfolio
company executives were not compensated in connection with the
communication of such statements, although they generally receive
compensation and investment opportunities in connection with their
portfolio company roles, and in certain cases are also owners of
portfolio company securities and/or investors in KPS-sponsored
vehicles. Such compensation and investments subject participants to
potential conflicts of interest in making the statements
herein.
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