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Monday, August 25, 2014

Sonoco to purchase Germany's Weidenhammer for about $383 million in cash, (NYSE: SON)

Sonoco Products Co on Monday said it agreed to purchase Germany's privately-held Weidenhammer Packaging Group for about $383 million in cash, which would give a boost to its packaging business. The deal is expected to increase Sonoco's global consumer-related packaging and services business to about $2.8 billion in annual sales, the company said in a statement.Sonoco, which provides a variety of consumer packaging, industrial products and protective packaging, said the deal should be accretive to the company's 2015 base earnings in the range of $0.09 to $0.14 per share.Sonoco said it intends to fund the acquisition through a combination of existing cash and debt.Macquarie Capital served as a financial advisor to Sonoco, while Weidenhammer was represented by Deloitte Corporate Finance Advisory.

Shares of SON fell by 0.17% or $-0.07/share to $40.30. In the past year, the shares have traded as low as $36.59 and as high as $44.65. On average, 395780 shares of SON exchange hands on a given day and today's volume is recorded at 234909.