Sonoco Adds Flexible Packaging Capacity With Acquisition of Wycon Corporation


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Sonoco Adds Flexible Packaging Capacity With Acquisition of Wycon Corporation

Company Also to Add Flexible Capacity in Canada

Strengthens Company's Printing Base to Serve Growing Flexible Packaging Markets in U.S., Mexico and Canada

HARTSVILLE, S.C., Feb. 27 /PRNewswire-FirstCall/ -- Sonoco (NYSE: SON), the global packaging company, has acquired the packaging assets and business of Wycon Corporation, a Waco, Texas-based flexible packaging subsidiary of privately held Seville Flex Pack Corporation, it was announced today by Charles L. Sullivan, executive vice president. The purchase price was not disclosed.

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The asset purchase includes Wycon's 135,000-square foot facility in Waco, which operates two 12-color rotogravure presses.

"Rotogravure printed flexible packaging makes up nearly 60 percent of Sonoco's flexible packaging annual sales, and we are projecting that our customers' expanding needs will drive average annual double-digit growth in this business over the next several years," said Sullivan. "The Wycon facility in Waco is an excellent strategic fit for Sonoco as it provides us with a state-of-the-art facility, an established workforce and a platform to accelerate our flexible packaging growth in the Southwest United States and Mexico."

"We also expect to complete the installation in May 2006 of an additional 8-color flexographic press at our Terrebonne, Quebec, Canada, flexible packaging plant, primarily to serve the confectionery market," said Sullivan.

In addition to the new Wycon plant, Sonoco operates six other flexible packaging converting facilities and two rotogravure cylinder engraving facilities located in the Eastern U.S. and Canada. Sonoco is a leader in sophisticated printed flexible packaging, providing a full range of services and high barrier/performance laminating capabilities to consumer product companies who serve the gum, confectionery, hard baked goods, processed foods, snack foods, coffee, beverages, home and personal care products and pet foods markets.

Founded in 1899, Sonoco is a $3.5 billion global manufacturer of industrial and consumer products and provider of packaging services, with more than 300 operations in 35 countries, serving customers in 85 nations. Additional information about Sonoco is available at http://www.sonoco.com.

Forward-looking Statements and Other Information

Statements included herein that are not historical in nature are intended to be, and are hereby identified as, "forward-looking statements" for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended. The words "estimate," "project," "intend," "expect," "believe," "anticipate," "objective," "goal" and similar expressions identify forward-looking statements. Forward-looking statements include, but are not limited to, statements regarding offsetting high raw material costs, adequacy of income tax provisions, refinancing of debt, adequacy of cash flows, effects of acquisitions and dispositions, adequacy of provisions for environmental liabilities and financial strategies and the results expected from them, pension plan funding, expected earnings and producing improvements in earnings. Such forward-looking statements are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management. Such information includes, without limitation, discussions as to estimates, expectations, beliefs, plans, strategies and objectives concerning our future financial and operating performance. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual results may differ materially from those expressed or forecasted in such forward-looking statements. Such risks and uncertainties include, without limitation: availability and pricing of raw materials; success of new product development and introduction; ability to maintain or increase productivity levels; international, national and local economic and market conditions; fluctuations in obligations and earnings of pension and postretirement benefit plans; ability to maintain market share; pricing pressures and demand for products; continued strength of our paperboard-based engineered carrier and composite can operations; anticipated results of restructuring activities; resolution of income tax contingencies; ability to successfully integrate newly acquired businesses into the Company's operations; currency stability and the rate of growth in foreign markets; use of financial instruments to hedge foreign exchange, interest rate and commodity price risk; actions of government agencies; and loss of consumer confidence and economic disruptions resulting from terrorist activities.

Additional information concerning some of the factors that could cause materially different results is included in the Company's reports on forms 10- K, 10-Q and 8-K filed with the Securities and Exchange Commission. Such reports are available from the Securities and Exchange Commission's public reference facilities and its Web site, the Company's investor relations department and the Company's Web site, http://www.sonoco.com.

SOURCE Sonoco CONTACT: Allan V. Cecil, Vice President of Sonoco, +1-843-383-7524, or allan.cecil@sonoco.com /