KPS Capital Partners, LP announced today that it has entered into an agreement for its portfolio company, Eviosys, to be sold to Sonoco Products Company, 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.
