Hartsville, South Carolina based Sonoco Products Company, a diversified global packaging leader, announced it has entered into an agreement to purchase the remaining equity interest in RTS Packaging, LLC from joint venture partner and Atlanta, Georgia based WestRock Company and the WestRock paper mill in Chattanooga, Tennessee, for $330 million in cash.
Sonoco also anticipates that it will be able to achieve $40 million of tax benefits from the transaction. Upon completion of the transaction, Sonoco will own 100 percent of RTS, formerly operated as a joint venture between Sonoco (35 percent of ownership interest) and WestRock (65 percent).
The transaction has been unanimously approved by the Sonoco Board of Directors and is expected to close in the first half of 2023.
