HARTSVILLE, S.C., Dec. 1 /PRNewswire-FirstCall/ -- Sonoco (NYSE: SON),
the global packaging company, has entered into an agreement whereby Sonoco-
Alcore, S.a.r.l., wholly owned by Sonoco, has acquired the remaining 75
percent interest in Demolli Industria Cartaria S.p.A., it was announced
today by Harris E. DeLoach, Jr., Sonoco's chairman, president and chief
executive officer. The acquisition is expected to be slightly accretive to
Sonoco's earnings in 2007.
(Logo: http://www.newscom.com/cgi-bin/prnh/19991006/SNCLOGO )
Demolli, with annual sales of approximately $60 million, is Italy's
largest manufacturer of tubes and cores and recycled paperboard, serving
markets in Italy and southern Europe. The transaction includes the purchase
of three tube and core manufacturing facilities and a recycled paperboard
mill.
With the completion of the Demolli transaction, Sonoco holds 100
percent interest in and operates 30 tube and core plants and seven paper
mills in Europe. As previously reported, Sonoco purchased from the Ahlstrom
Corporation of Finland its 35.5 percent interest in Sonoco-Alcore, S.a.r.l.
in October of 2006. The combined purchase price of the Demolli and Ahlstrom
transactions is approximately $120 million.
In commenting on the acquisition DeLoach said, "This transaction
further strengthens our competitive position in Europe, allowing us to
fully integrate our European operations and better leverage our worldwide
tube, core and paper manufacturing capabilities."
As previously reported, Sonoco initiated in October 2006 cost-reduction
measures primarily focused on certain international operations that are
expected to result in the closing of 12 plant locations globally and the
reduction of 520 positions worldwide. These actions are expected to achieve
approximately $23 million in annual pre-tax savings when fully phased in
through the remainder of 2006 and 2007. The total cost of the restructuring
program is estimated to be approximately $35 million.
About Sonoco
Founded in 1899, Sonoco is a $3.5 billion global manufacturer of
industrial and consumer packaging 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 .
SOURCE Sonoco
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Related links:
http://www.sonoco.com
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CONTACT:
Roger Schrum of Sonoco, +1-843-339-6018, or
roger.schrum@sonoco.com
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