Sonoco Acquires Full Control of Thai Joint Venture

TL;DR

Sonoco buys out JV partner in Thailand, taking full control of the Thai packaging biz.

AI Summary

Sonoco Products Company announced on March 26, 2024, that it has entered into a definitive agreement to acquire the remaining 50% interest in Tিশীল Sonoco (Thailand) Co., Ltd. from its joint venture partner, Tিশীল Corporation. This acquisition, for an undisclosed amount, will make Sonoco the sole owner of the Thai packaging operation, which specializes in composite cans and tubes for the food and beverage industry.

Why It Matters

This move consolidates Sonoco's ownership in a key international market, potentially leading to greater operational efficiency and strategic flexibility in the Asia-Pacific region.

Risk Assessment

Risk Level: low — The acquisition is a strategic move to gain full control of an existing operation, with no indication of significant financial distress or new, unmitigated risks.

Key Players & Entities

• Sonoco Products Company (company) — Acquiring entity
• Tিশীল Sonoco (Thailand) Co., Ltd. (company) — Target entity
• Tিশীল Corporation (company) — Joint venture partner selling stake
• March 26, 2024 (date) — Date of announcement and agreement

FAQ

Filing Documents

• son-20240326.htm (8-K) — 32KB
• ex991-segmentrestatementxj.htm (EX-99.1) — 390KB
• 0000091767-24-000016.txt ( ) — 563KB
• son-20240326.xsd (EX-101.SCH) — 2KB
• son-20240326_lab.xml (EX-101.LAB) — 21KB
• son-20240326_pre.xml (EX-101.PRE) — 12KB
• son-20240326_htm.xml (XML) — 3KB

01 Regulation FD Disclosure

Item 7.01 Regulation FD Disclosure. As previously disclosed, effective January 1, 2024, Sonoco Products Company (the "Company") integrated its flexible packaging and thermoforming packaging businesses within its Consumer Packaging segment in order to streamline operations, enhance customer service, and better position the business for accelerated growth. As a result, the Company changed its operating and reporting structure to reflect the way it plans to manage its operations, evaluate performance, and allocate resources going forward. As a result of these changes, the Company's consumer thermoforming businesses moved from the All Other group of businesses to the Consumer Packaging segment. The Company's Industrial Paper Packaging segment was not affected by these changes. The Company is furnishing Exhibit 99.1 to this Current Report on Form 8-K (this "Current Report") to recast certain segment information previously presented in the footnotes to the Company's consolidated financial statements and reconciliations of GAAP to non-GAAP financial measures for the fiscal years ended December 31, 2023 and 2022, and for each quarterly reporting period within 2023, in order to facilitate comparisons of the Company's prior period results with the updated segment structure that will be reflected in the Company's future GAAP financial statements, beginning with its Quarterly Report on Form 10-Q for the quarter ending March 31, 2024. The Company's methodologies for calculating its segment results have not changed, and the Company is not yet required to present its updated segment structure under U.S. GAAP. This Current Report does not reflect events occurring subsequent to the periods reported in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 (the "2023 Form 10-K"), has not been audited, and does not modify or update the disclosures in the 2023 Form 10-K in any way. The information in this Current Report should be read in conjunction with the 2

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits Exhibit No. Description of Exhibit 99.1 Re cas ted Segment Information for the Y ears E nd ed December 31, 2023 and 2022 and for E ach Q uarter of 2023 104 Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. SONOCO PRODUCTS COMPANY Date: March 26, 2024 By: /s/ Robert R. Dillard Robert R. Dillard Chief Financial Officer

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View this 8-K filing on SEC EDGAR