Dec 20 (Reuters) - Packaging products provider Sonoco Products Co said on Monday it will buy sustainable metal packaging manufacturer Ball Metalpack for $1.35 billion in cash to expand its sustainable packing portfolio.
Sonoco expects to realize tax benefits of about $180 million with the deal.
Colorado-based Ball Metalpack, a joint venture owned by Platinum Equity and Ball Corporation, develops sustainable packaging solutions and has been producing steel tinplate food and aerosol cans for more than a century.
Ball Metalpack is projected to generate about $850 million in revenue and $111 million of adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in 2021, Sonoco said.
"We believe the addition of Ball Metalpack will further strengthen our stable cash flow generation while driving solid earnings accretion," Sonoco's Chief Executive Officer, Howard Coker, said.
Ball Metalpack's boss Jim Peterson will continue to lead the company after the deal but the business would be under Sonoco's consumer packaging division.
Sonoco has obtained a commitment from JPMorgan Chase Bank for a $1.0 billion senior unsecured bridge loan facility, in connection with the acquisition.
J.P. Morgan Securities LLC acted as financial adviser and Freshfields Bruckhaus Deringer LLP was legal adviser to Sonoco.
Goldman Sachs acted as financial adviser to Ball Metalpack.
Latham & Watkins LLP was Platinum Equity's legal adviser and Skadden, Arps, Slate, Meagher & Flom LLP acted as legal adviser to Ball Corporation.
(Reporting by Aishwarya Nair in Bengaluru; Editing by Shinjini Ganguli and Krishna Chandra Eluri)
