Sonoco to Acquire Majority Stake in Brazilian Flexible Packaging Company

Brazil enjoys the strongest economy in Latin America and is among the top four developing economies in the world. Given that, it’s no surprise that Sonoco, one of the largest diversified global packaging companies, has entered an agreement to acquire a majority interest in Graffo Paranaense de Embalagens S/A (Graffo), a closely held flexible packaging business located in Pinhais, Curitiba, Brazil.

Founded in 2001, Graffo had sales of approximately $35 million in 2014. It operates high-quality rotogravure printing presses, including a new 10-color press, as well as sophisticated lamination applications at its Pinhais facility. With approximately 230 employees, Graffo serves the confectionery, dairy, pharmaceutical and industrial markets in Brazil.

"We were looking to invest jointly in Brazil with a partner who has strong technical capabilities and established relationships with both large global consumer product companies and growing local businesses," said Jack Sanders, president and CEO, noting that Sonoco will be acquiring a two-thirds stake in Graffo. The transaction is expected to close in the second quarter of 2015.