Sonoco Products Company · NYSE:SON
Sonoco Products — Merger or Acquisition (June 2024)
13 slides from Sonoco Products's merger presentation, Jun 24, 2024
Slide 1: Sonoco to Acquire Eviosys
SONOCO TO ACQUIRE EVIOSYS Creating the world’s leading metal food can and aerosol packaging platform June 24, 2024
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Forward-Looking Statements Statements included herein that are not historical in nature, are intended to be, and are hereby identified as “forward-looking statements” for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended
Slide 3: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES Use of Non-GAAP information We refer to certain non-GAAP financial measures in this press release, including: • Adjusted earnings per common share (“Adjusted EPS”), defined as GAAP earnings per share adjusted to exclude amounts, including the associated tax effects, relat
Slide 4: Today's Attendees
TODAY’S ATTENDEES Lisa Weeks Howard Coker Rob Dillard VP of IR & Communications President & CEO Chief Financial Officer 4
Slide 5: Acquisition Establishes Sonoco as Global Leader in Metal Food Can and Aerosol Packaging
ACQUISITION ESTABLISHES SONOCO AS THE GLOBAL LEADER IN METAL FOOD CAN AND AEROSOL PACKAGING Combination of complementary businesses creates global scale and capabilities to better serve the market with innovation and customer service Transaction value of approximately $3.9 billion represents a multi
Slide 6: Sonoco's Strategic Transformation Journey
SONOCO’S STRATEGIC TRANSFORMATION JOURNEY Defined Our Fewer, Bigger Portfolio Focused Our Core Strengths Businesses Realignment Operational Model Core Attributes of a Consumer Industrial Value Creation Model Sonoco Business TFP RIGID PAPER Advanced Material Science CONTAINERS INDUSTRIAL Structural S
Slide 7: Focus on Sonoco Core Platforms
FOCUS ON SONOCO CORE PLATFORMS Four Core SONOCO Why expand in metal Businesses Investment Thesis packaging? Optional inorganic Large Market METAL growth; stable, defensive Essential products serving PACKAGING business a $25 billion market globally* Financially Attractive RIGID PAPER Strong returns o
Slide 8: Eviosys: European Leader in Metal Cans & Ends
EVIOSYS: EUROPEAN LEADER IN METAL CANS & ENDS SELECTED PRODUCT OFFERINGS #1 in food cans in Europe 2PC / 3 PC 2PC / 3 PC Aluminum Aluminum & Steel Ends & Steel Cans Other Containers ~$2.5B 2024E Revenue Promotional ~$430M Twist Closures Aerosols Packaging 2024E Adj. EBITDA ~17% REVENUE BREAKDOWN * 2
Slide 9: Compelling Strategic Rationale
COMPELLING STRATEGIC RATIONALE Adds Leading Scale • Pro forma, Sonoco will be the leading metal food and aerosol can manufacturer globally to Our Core Metal • Significantly expands customer relationships and allows Sonoco to more effectively Can Platform serve customers across multitude of product o
Slide 10: Providing Enhanced Scale to Drive Growth and Profitability
PROVIDING ENHANCED SCALE TO DRIVE GROWTH AND PROFITABILITY Key Highlights FY2024E1 FY2024E FY2024E2 Revenue ($Bn) 6.7 2.5 9.2 Significantly improved Adjusted EBITDA ($B) 1.1 0.4 1.6 scale, with EBITDA approaching ~$1.6 billion Adjusted EBITDA Margin (%) 16% 17% 17% Adjusted EBITDA - Capex ($B) 0.7 0
Slide 11: Strong Identified Synergies
STRONG IDENTIFIED SYNERGIES PROCUREMENT Enhanced purchasing power; and SUPPLY opportunity to optimize raw material, CHAIN supply chain, and transportation costs Synergy Impact Most procurement synergies expected to be realized in year one FACILITY OPTIMIZATION Focus global footprint on hub-and-spoke
Slide 12: Transaction Expected to Create Significant Value for Stakeholders
Transaction Details TRANSACTION EXPECTED TO CREATE SIGNIFICANT VALUE FOR STAKEHOLDERS • Sonoco to acquire Eviosys for €3,615 billion, or ~$3.9 billion, on a cash-free, debt-free basis • Eviosys estimated 2024 adjusted EBITDA of $430 million Purchase Price • Anticipate over $100 million in synergies
Slide 13: Looking Forward to Our Next Chapter
LOOKING FORWARD TO OUR NEXT CHAPTER Combined company enhances our ability to serve customers Strong leadership and bench strength on both sides Rodger Fuller, Sonoco COO, to lead integration Strong shareholder value proposition Looking forward to the next chapter of Sonoco 13
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