Product category:
Weighing and counting equipment
News Release from: Sonoco Consumer Products
Edited by the Manufacturingtalk Editorial
Team on 22 May 2007
Rigid plastics packaging equipment maker
acquired
Sonoco is to acquire Matrix Packaging, manufacturer of rigid plastics packaging equipment, using extrusion blow molding, injection stretch blow molding and injection molding.
Sonoco has signed a definitive agreement to acquire privately held Matrix Packaging for an all-cash purchase price of approximately US$210 million The acquisition, which is subject to regulatory approval, is expected to be modestly accretive in 2007 and is expected to generate sales on an annualized basis of approximately US$140 million
This article was originally published on Manufacturingtalk on 30 Jul 2004 at 8.00am (UK)
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The transaction is expected to be closed by the end of June 2007.
Headquartered in Mississauga, Ontario, Canada, Matrix operates six state-of-the-art manufacturing facilities in the United States and Canada and employs approximately 860 workers.
Founded in 1992, Matrix utilizes some of the most technologically advanced rigid plastics packaging equipment, including extrusion blow molding, injection stretch blow molding and injection molding that are able to produce mono- and multi-layer rigid plastic containers utilizing a number of plastic materials.
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The company manufactures a variety of custom-designed and stock containers and closures for multi-national consumer product goods companies serving the personal care, household chemicals, automotive, pharmaceutical and other markets.
In addition, Matrix provides full-service decorating and component assembly capabilities including silk-screen printing, pressure sensitive and heat transfer labeling.
"The addition of Matrix will transform our current rigid plastic container business, both in size and in scope as we will have a better balance in serving both the food and drink and personal care markets," said Harris E DeLoach, Jr, chairman, president and chief executive officer..
"Matrix has grown rapidly in just 15 years by investing in state-of-the-art technology and advanced equipment that provide its customers with innovation, flexibility and quality.
By maintaining Matrix's talented management team, we expect to be able to continue to aggressively grow this business." Matrix has a strong leadership team led by Pushminder Judge, its president and chief executive officer.
Subsequent to the acquisition by Sonoco, Judge will continue to lead the business and be a member of Sonoco's management committee.
"I am excited about the benefits that the partnership with Sonoco brings our customers and employees," said Judge.
"We believe the acquisition presents an attractive opportunity to serve our customers' packaging needs in new product categories and new geographic markets." Since 2002 Matrix has been owned by its two founders, Pushminder Judge and Graeme Malloch, in partnership with certain institutional investors led by Tricor Pacific Capital, a leading private equity firm with offices in Vancouver, British Columbia, Canada and Lake Forest, Illinois, USA.
Brad Seaman, a managing director of Tricor, said, "We are fortunate to have partnered with Pushminder Judge and his team.
They have done a terrific job of providing the highest quality products and great service to their customers and have created significant value for all of Matrix' shareholders." BMO Capital Markets acted as exclusive financial advisor to Matrix in this transaction.
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