News about packaging

Sonoco's third-quarter net sales were $2.0 billion, down 4.2% year over year mainly due to the ThermoSafe divestiture, and essentially flat excluding divestitures. The company reported a GAAP net loss of $732 million, or $7.36 per diluted share, driven by an $829 million non-cash goodwill impairment, while adjusted net income was $167 million ($1.67 per share) versus $191 million a year earlier. Operating cash flow was $285 million, and total debt fell $162 million after the company refinanced an $800 million term loan. CEO Howard Coker cited drought in Europe and the U.S. and higher inflation costs, while Industrial Paper Packaging posted URB trade ton sales up 10% and 94% mill utilization. Consumer Packaging volume/mix fell 3% on adverse weather and unfavorable price/cost dynamics.

Silgan Holdings and private equity firm American Industrial Partners agreed to buy Trivium Packaging for $3.4 billion (€3.03 billion) to expand Silgan's footprint in Europe. Netherlands-based Trivium, currently owned by Ontario Teachers' Pension Plan and Ardagh Group, will be combined with Silgan's metal businesses into a global metal packaging business valued at $7.3 billion. American Industrial Partners will invest about $1 billion for a 40% stake, while Silgan keeps 60% and receives about $2.3 billion in cash proceeds; the deal is expected to close in mid-2027. Higher raw material costs have squeezed packaging margins, and Silgan shares, down about 6% year to date, rose about 9% in afternoon trading.

International Paper (NYSE:IP) shares rose 7.6% on reports that two private equity firms may bid for its European business, formerly DS Smith, after the stock had fallen roughly 20% year-to-date. The Financial Times reported the total sale could be under $6 billion, a 40% discount to the $9.9 billion International Paper paid in 2024. Even at that loss, a sale would ease the company's roughly $8.5 billion in net debt and remove a segment with steady operating losses. The article notes, however, that the North American business is still struggling, with revenue down 4.5% and operating income down 26.4% last quarter, so the rebound could prove a one-off unless conditions improve.