Sonoco Products Co. has expanded its plastics stake again with the acquisition of certain assets of Caraustar Industries Inc. of Atlanta.
Sonoco bought the industrial plastic carriers and fiber containers businesses for undisclosed terms on Oct. 3. The deal went down about three months after Sonoco completed the purchase of custom blow molder Matrix Packaging Inc. for $210 million.
The industrial plastic carriers business includes injection molded and extruded cores used to wind textiles and other goods, thread carriers, film packaging, carpet carriers and nozzles used to package caulking and other adhesives and sealants. The plastics plants are in New Smyrna Beach, Fla., and Union, S.C. Caraustar consolidated its plastic nozzles production in Union three years ago when it closed a plant in Georgetown, Ky.
Also part of the deal were four fiber container plants that make spiral-wound recycled paperboard containers for sealants, grease, food and other products.
``The addition of Caraustar's fiber containers and plastics operations are a good strategic fit with Sonoco's global rigid paper and plastics businesses,'' said Sonoco Chairman, President and Chief Executive Officer Harris DeLoach.
The acquired businesses are expected to generate $50 million in annual sales for Sonoco. Plastics will account for less than half of that, said Roger Schrum, vice president of investor relations.
The deal takes Caraustar out of plastics, said Caraustar Chief Financial Officer and Senior Vice President Ronald Domanico.
Sonoco still is studying the plants it acquired and has not yet decided on whether they can be consolidated, Schrum said by telephone from Sonoco's Hartsville, S.C., headquarters.
``We're going through them looking for synergies,'' he said.
Caraustar sold the businesses to focus on its mainstay, recycled box-board products. The firm will use proceeds from the sale to reduce debt.