KPS Capital Partners to sell sustainable packaging firm Eviosys to Sonoco in a multi-billion-euro deal

On June 24, 2024, KPS Capital Partners, LP announced an agreement for its portfolio firm, Eviosys, to be acquired by Sonoco Products Company, a leading global entity in sustainable packaging headquartered in Hartsville, South Carolina. The acquisition is valued at €3.615 billion (approximately $3.9 billion), with Sonoco having the option to pay up to $200 million of the total in its stock, contingent on specific conditions. The transaction will conclude by the end of 2024, pending necessary works council consultations, regulatory approvals, and customary closing conditions.

Eviosys stands at the forefront of metal packaging worldwide, specialising in food cans, ends, aerosol cans, aluminium cans, metal closures, and promotional packaging. Serving numerous consumer brands, Eviosys boasts the EMEA region's largest footprint in metal food can manufacturing. With operations spanning 44 manufacturing facilities across 17 countries in Europe, the Middle East, and Africa, Eviosys employs over 6,300 professionals. The company is renowned for its commitment to sustainability, offering a product lineup exclusively comprised of infinitely recyclable metal packaging. Eviosys leads the industry with outstanding performance across various sustainability metrics.

Through a complex global corporate carve-out transaction, KPS established Eviosys to acquire Crown Holdings, Inc.'s EMEA Food and Consumer Packaging Business in August 2021. Despite Crown retaining a 20 per cent stake in Eviosys, KPS swiftly assembled a capable management team headed by CEO Tomás López. Their goal is to reshape Eviosys into one of Europe's foremost packaging enterprises.

In less than three years under KPS's ownership, Eviosys transformed into a fully independent and notably more profitable entity. With a shared vision of growth, innovation, and sustainability, KPS, alongside management, substantially enhanced Eviosys' strategic position and competitiveness, leading to a nearly 50 per cent increase in profitability.

This achievement was fueled by KPS's substantial investments, totalling around €225 million, to optimise Eviosys' manufacturing operations for enhanced asset utilisation and reduced costs. Concurrently, Eviosys expanded its market presence across new and existing geographies, bolstering its footprint in the packaging sector.

Moreover, Eviosys, steadfastly committed to sustainability, achieved significant milestones, surpassing greenhouse gas emissions targets and securing an esteemed EcoVadis Platinum rating in 2023, placing it among the top 1 per cent of all rated companies.

Today, Eviosys thrives as an independent leader in providing innovative, sustainable metal packaging solutions, setting industry benchmarks for quality and scalability.

Michael Psaros, Co-Founder, and Co-Managing Partner of KPS, said, "Eviosys is another demonstration of KPS' investment strategy of seeing value where others do not, buying right, and making businesses better across economic cycles, geographies, and industries over decades."

"We are proud of Eviosys' extraordinary transformation under our ownership. Eviosys demonstrates our ability to build industry-leading companies on a global basis. The Company's success is a direct result of KPS' commitment to and investment in its R&D, innovative new technologies and products, manufacturing facilities, and people. We believe Sonoco's acquisition of Eviosys will benefit the combined companies' customers, employees, and investors. The industrial logic is compelling."

"We extend our heartfelt congratulations and deep gratitude to Tomás López, Eviosys' Chief Executive Officer, along with the Company's senior management team, for their strategic vision and brilliant execution, which resulted in tremendous value creation under KPS' ownership in a short period of time. We also sincerely thank Crown for their highly constructive and supportive partnership."

Tomás López, CEO of Eviosys, added, "For over 200 years, Eviosys and its predecessor companies have provided best-in-class metal packaging that enhances the appeal of our customers' brands. KPS recognized the investment opportunity and upside presented by Eviosys. KPS's extensive manufacturing expertise and experience provided us with the plan and resources that created enormous value."

"We thank KPS for creating a culture in our company focused on continuous improvement, manufacturing excellence and environmental stewardship. We are proud of our people, products, and service. By combining with Sonoco, we will work to bring our high-quality, sustainable, and innovative packaging solutions to new and existing customers around the globe. Our companies are strongly committed to providing the highest customer service, employee safety, and operating efficiencies."

Rothschild & Co. serves as the sole financial advisor, and Paul, Weiss, Rifkind, Wharton & Garrison LLP serves as legal counsel for KPS and Eviosys. Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC serve as financial advisors to Sonoco, and Freshfields Bruckhaus Deringer LLP serves as Sonoco's legal counsel.