Company Also to Add Flexible Capacity in Canada
Strengthens Company's Printing Base to Serve Growing Flexible Packaging
Markets in U.S., Mexico and Canada
HARTSVILLE, S.C., Feb. 27 /PRNewswire-FirstCall/ -- Sonoco (NYSE: SON),
the global packaging company, has acquired the packaging assets and business
of Wycon Corporation, a Waco, Texas-based flexible packaging subsidiary of
privately held Seville Flex Pack Corporation, it was announced today by
Charles L. Sullivan, executive vice president. The purchase price was not
disclosed.
(Logo: http://www.newscom.com/cgi-bin/prnh/19991006/SNCLOGO)
The asset purchase includes Wycon's 135,000-square foot facility in Waco,
which operates two 12-color rotogravure presses.
"Rotogravure printed flexible packaging makes up nearly 60 percent of
Sonoco's flexible packaging annual sales, and we are projecting that our
customers' expanding needs will drive average annual double-digit growth in
this business over the next several years," said Sullivan. "The Wycon facility
in Waco is an excellent strategic fit for Sonoco as it provides us with a
state-of-the-art facility, an established workforce and a platform to
accelerate our flexible packaging growth in the Southwest United States and
Mexico."
"We also expect to complete the installation in May 2006 of an additional
8-color flexographic press at our Terrebonne, Quebec, Canada, flexible
packaging plant, primarily to serve the confectionery market," said Sullivan.
In addition to the new Wycon plant, Sonoco operates six other flexible
packaging converting facilities and two rotogravure cylinder engraving
facilities located in the Eastern U.S. and Canada. Sonoco is a leader in
sophisticated printed flexible packaging, providing a full range of services
and high barrier/performance laminating capabilities to consumer product
companies who serve the gum, confectionery, hard baked goods, processed foods,
snack foods, coffee, beverages, home and personal care products and pet foods
markets.
Founded in 1899, Sonoco is a $3.5 billion global manufacturer of
industrial and consumer products and provider of packaging services, with more
than 300 operations in 35 countries, serving customers in 85 nations.
Additional information about Sonoco is available at http://www.sonoco.com.
Forward-looking Statements and Other Information
Statements included herein that are not historical in nature are intended
to be, and are hereby identified as, "forward-looking statements" for purposes
of the safe harbor provided by Section 21E of the Securities Exchange Act of
1934, as amended. The words "estimate," "project," "intend," "expect,"
"believe," "anticipate," "objective," "goal" and similar expressions identify
forward-looking statements. Forward-looking statements include, but are not
limited to, statements regarding offsetting high raw material costs, adequacy
of income tax provisions, refinancing of debt, adequacy of cash flows, effects
of acquisitions and dispositions, adequacy of provisions for environmental
liabilities and financial strategies and the results expected from them,
pension plan funding, expected earnings and producing improvements in
earnings. Such forward-looking statements are based on current expectations,
estimates and projections about our industry, management's beliefs and certain
assumptions made by management. Such information includes, without limitation,
discussions as to estimates, expectations, beliefs, plans, strategies and
objectives concerning our future financial and operating performance. These
statements are not guarantees of future performance and are subject to certain
risks, uncertainties and assumptions that are difficult to predict. Therefore,
actual results may differ materially from those expressed or forecasted in
such forward-looking statements. Such risks and uncertainties include, without
limitation: availability and pricing of raw materials; success of new product
development and introduction; ability to maintain or increase productivity
levels; international, national and local economic and market conditions;
fluctuations in obligations and earnings of pension and postretirement benefit
plans; ability to maintain market share; pricing pressures and demand for
products; continued strength of our paperboard-based engineered carrier and
composite can operations; anticipated results of restructuring activities;
resolution of income tax contingencies; ability to successfully integrate
newly acquired businesses into the Company's operations; currency stability
and the rate of growth in foreign markets; use of financial instruments to
hedge foreign exchange, interest rate and commodity price risk; actions of
government agencies; and loss of consumer confidence and economic disruptions
resulting from terrorist activities.
Additional information concerning some of the factors that could cause
materially different results is included in the Company's reports on forms 10-
K, 10-Q and 8-K filed with the Securities and Exchange Commission. Such
reports are available from the Securities and Exchange Commission's public
reference facilities and its Web site, the Company's investor relations
department and the Company's Web site, http://www.sonoco.com.
SOURCE Sonoco
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Related links:
http://www.sonoco.com
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AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
CONTACT:
Allan V. Cecil, Vice President of Sonoco,
+1-843-383-7524, or allan.cecil@sonoco.com
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