Sonoco Divests Rigid Blow Molding Division to Amcor for $280 million; We Maintain Our $39 FVE
We view the sale of Sonoco's blow molding assets to Amcor as value-neutral for Sonoco, and plan on maintaining our $39 fair value estimate. The assets generated approximately $210 million in sales annually, and around $35 million in EBITDA. We believe Sonoco got a fair price of $280 million for the assets, purchased at the same enterprise value/EBITDA multiple of 8 that we use to value Sonoco's earnings beyond our explicit forecast period.This divestiture seems to make strategic sense for Sonoc...
Sonoco Products is a manufacturer of industrial and consumer packaging products and a provider of packaging services. The company's segments are: Consumer Packaging, which includes round composite cans, shaped rigid paperboard containers, fiber and plastic caulk/adhesive tubes, aluminum, steel and peelable membrane easy-open closures for composite and metal cans; Paper and Industrial Converted Products, which include recycled paperboard, chipboard, tubeboard, lightweight corestock, boxboard, linerboard, corrugating medium, edgeboard, paper grades, and adhesives; Display and Packaging, which include point-of-purchase displays; and Protective Solutions, which include packaging and components.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
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