June 24 Reuters Sonoco Products said on Monday it would buy European food cans maker Eviosys from private equity group KPS Capital Partners in a 3.9 billion deal, to expand its metal and aerosol packaging business.

The U.S. packaging firm expects to achieve more than 100 million in synergies from the integration of Eviosys with Sonoco39;s complementary metal can business.

The deal, expected to close by end2024 subject to certain conditions, will immediately add to Sonoco39;s adjusted earnings per share EPS and result in a more than 25 increase to its 2025 adjusted EPS.

The company intends to finance the deal with new debt and proceeds from an equity issuance of up to 500 million.

KPS Capital Partners said in a statement Sonoco has the option, under certain circumstances, to pay up to 200 million of the purchase consideration with its stock.

Eviosys CEO Tomas Lopez will remain with Sonoco and lead the company39;s Europe, Middle East, and Africa EMEA metal packaging business.

Sonoco said the acquisition advances its portfolio transformation strategy that also featured the divestiture of ThermoSafe, its temperatureassured packaging unit, and other businesses.

It expects total proceeds of at least 1 billion from divestitures in the next 12 to 18 months.

Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Nivedita Bhattacharjee and Devika Syamnath

Source Reuters