Sonoco to sell ThermoSafe business to Arsenal Capital Partners
Sonoco announced the signing of a definitive agreement to sell its ThermoSafe business unit to Arsenal Capital Partners, a private equity firm specializing in building market-leading industrial growth and healthcare companies. The transaction has a total potential value of up to $725 million.
The purchase price includes $650 million on a cash-free and debt-free basis payable at closing, along with an additional consideration of up to $75 million if certain performance targets for the 2025 calendar year are achieved. The sale remains subject to customary closing conditions, including regulatory approvals, and is expected to be finalized by the end of 2025. Net proceeds will be directed towards reducing the company’s debt.
Based in Arlington Heights, Illinois, ThermoSafe is a leading global provider of temperature-controlled packaging solutions for the safe transport of pharmaceuticals, biologics, vaccines and other sensitive products. In 2024, the business generated more than $240 million in revenue and approximately $50 million in proforma adjusted EBITDA. Its product portfolio includes advanced technologies such as bio-based insulation and reusable systems covering refrigerated, frozen and controlled room temperature applications. The unit employs around 900 people across operations in the Americas, EMEA and Asia.
“With the planned sale of ThermoSafe, we are completing the next step in Sonoco’s portfolio transformation, which has significantly streamlined our operations from a broad portfolio of diversified businesses into two core global business segments,” commented Howard Coker, President and CEO. “This simplified structure enables us to deliver more sustainable growth, build on our strengths and drive greater value for customers. We are proud of what we have achieved in developing ThermoSafe into one of the industry’s leading providers, more than doubling revenues since 2012 and substantially enhancing its technology and product range. We sincerely thank the ThermoSafe team for their dedication and customer focus, and we are confident that their expertise and leadership will continue to thrive under Arsenal’s ownership.”
Following the divestiture, and excluding any additional consideration, Sonoco expects the net proceeds to reduce its net leverage ratio to approximately 3.5x, based on second-quarter total debt less cash and the projected 2025 adjusted EBITDA guidance range excluding ThermoSafe.
