HARTSVILLE, S.C., March 4 /PRNewswire-FirstCall/ -- Sonoco (NYSE: SON),
the global packaging company, has entered into a put/call agreement with the
majority shareholders of joint venture partner Demolli Industria Cartaria
S.p.A., an Italian-based manufacturer of paperboard and engineered carriers,
it was announced today by Harris E. DeLoach, Jr., president and chief
executive officer.
(Logo: http://www.newscom.com/cgi-bin/prnh/19991006/SNCLOGO )
Under the agreement, Demolli will be able to require through a put option
arrangement that Sonoco buy the remaining shares in Demolli that it does not
currently own at any time through December 2006. The agreement also gives
Sonoco the right, at its discretion, to purchase the remaining shares in
Demolli through a call option arrangement at any time after December 2006
through December 2009. Sonoco currently owns 25 percent of Demolli, a position
it has held since 1995. The price of the shares purchased will be determined
by a predetermined formula, which Sonoco believes to approximate fair value,
related to an earnings multiple at the time such shares might be put or
called.
"This agreement is a continuation of Sonoco's overall growth strategy
which includes acquisitions and joint ventures in addition to organic growth
encompassing new product and market development, extensions of existing
technologies and geographical expansion," said DeLoach. "Demolli and its
principal, Carlo Ripamonti, have been excellent partners since forming our
joint venture in late 1995. We are delighted to complete this agreement that
further enhances our outstanding relationship," added DeLoach.
Demolli, with annual sales of approximately $80 million, is Italy's
largest manufacturer of tubes and cores and a major manufacturer of recovered
paperboard, serving markets in Italy and northern Europe.
Sonoco, founded in 1899, is a $2.8 billion global manufacturer of
industrial and consumer products and provider of packaging services, with
approximately 295 locations in 32 countries, serving customers in 85 nations.
Additional information about the Company is available at 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, 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.
Information about the Company's use of non-GAAP financial measures, why
management believes presentation of non-GAAP financial measures provides
useful information to investors about the Company's financial condition and
results of operations, and the purposes for which management uses non-GAAP
financial measures is included in the Company's 2002 Annual Report on Form 10-
K filed with the Securities and Exchange Commission. 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, www.sonoco.com .
SOURCE Sonoco