Sonoco has announced the signing of a definitive agreement to acquire a majority interest in Graffo Paranaense de Embalagens S/A (Graffo), a closely held flexible packaging business located in Pinhais, Curitiba, Brazil. Terms were not disclosed, and the transaction is expected to close in the second quarter of 2015.
Sonoco Signs Agreement to Acquire Majority Stake in Brazilian Flexible Packaging Company
Founded in 2001, Graffo had sales of approximately $35 million in 2014. It operates high-quality rotogravure printing presses, including a new 10-color press, as well as sophisticated lamination applications at its Pinhais facility. With approximately 230 employees, Graffo serves the confectionery, dairy, pharmaceutical and industrial markets in Brazil.
"We're extremely pleased to join Graffo with Sonoco's growing global flexible packaging business," says Jack Sanders, president and chief executive officer, noting that Sonoco will be acquiring a two-thirds stake in Graffo. "We were looking to invest jointly in Brazil with a partner who has strong technical capabilities and established relationships with both large global consumer product companies and growing local businesses, where we could bring our customer relationships and technical capabilities to grow our presence in this important emerging market."