Packaging firm Sonoco in $3.9 bln deal for Eviosys; shares fall

Sonoco Products

24/06/2024 15:22

** Shares of packaging firm Sonoco Products  SON.N  fall as
much as 5.7% to an eight-month low of $52.43 
    ** If losses hold, stock set for worst day since February
    ** To buy European food can maker Eviosys from
private-equity group KPS Capital Partners in a $3.9 bln deal
    ** SON expects to achieve more than $100 mln in synergies
from the integration of Eviosys with Sonoco's complementary
metal can business 
    ** Intends to finance the deal with new debt and proceeds
from an equity issuance of up to $500 million.
    ** Sonoco has the option to pay up to $200 mln of the
purchase consideration with its stock
    ** Up to last close, stock down 3% YTD
    

 (Reporting by Anuja Bharat Mistry in Bengaluru)
 ((AnujaBharat.Mistry@thomsonreuters.com))