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$SON said SVP of Global Industrial Products and Protective Solutions John Colyer is relinquishing his leadership to focus on treating health issue. Rodger Fuller, group VP, is assuming responsibilities for Industrial businesses in Americas, including Tubes and Cores, Paper, Adhesives and Recycling in North America and South America.
Packaging company $SON has signed a definitive agreement to acquire Clear Lam Packaging, a manufacturer of packaging films, for around $170MM in cash. The deal is part of Sonoco’s strategy of expanding its global flexible packaging and thermoforming plastics operations.
$SON's BoD declared a $0.39 per share quarterly common stock dividend, a 5.4% increase from the previous dividend of $0.37 per share. The dividend will be paid on June 9, 2017, to shareholders of record as of May 12, 2017. $SON’s projected annualized dividend of $1.56 per share provides a yield of about 3%.
$SON has completed the acquisition of Peninsula Packaging Company for approx $230MM, from funds managed by Odyssey Investment Partners, LLC and other shareholders. $SON financed the transaction with a combination of cash and a $150MM 3-year term loan. Peninsula’s financial results will be added to $SON's Consumer Packaging segment.
$SON's fully owned subsidiary Sonoco-Alcore S.a.r.l. announced that it will raise prices by EUR60 (approx. $64) per tonne on all recycled paperboard grades sold in the company's European regions. The price change is effective with shipments on or after 17th March 2017.
Cascades Sonoco, a JV of $SON and Cascades Inc., has invested about $16MM for the expansion of its existing Birmingham, Ala., facility. This investment in world-class water-based coating technology will provide coated paper and paperboard substrates using its new FlexShield, FluteSHIELD and SurfSHIELD coating technology.
$SON agreed to buy Peninsula Packaging Company for about $230MM in cash. Peninsula, which is owned by a fund managed by Odyssey Investment Partners, LLC, is a manufacturer of thermoformed packaging for fresh fruit and vegetables found in the fast-growing perimeter of retail supermarkets. The transaction is expected to close by 2Q17.
$SON said it is implementing price increases for all paperboard tubes and cores in the United States and Canada by a minimum of 8%. $SON previously announced a 6-8% price increase on all paperboard tubes and cores in October 2016 and $SON is revising the increase to a minimum of 8%, effective with shipments beginning Feb. 13, 2017.
For 2017, $SON expects cash from operations to be about $470MM and free cash flow to be about $126MM, after spending $190MM in capital investments and payment of dividends. $SON expects free cash flow to be lower in 2017 due to increased pension contributions, higher cash taxes and historic practice of increasing cash dividends to shareholders.
$SON expects to generate about $398MM in cash from operations in 2016, including estimated cash tax payments and fees of $81MM related to sale of $SON's blow molding plastics operations in November 2016. $SON sees to spend about $190MM on capital investments and $147MM on cash dividends to shareholders, thus leaving free cash flow of about $61MM.