The acquisition, which is subject to regulatory approval, is expected to be modestly accretive in the first year and is expected to generate sales on an annualised basis of approximately $200 million.
"This acquisition will significantly enhance our consumer segment strategy of being a total solutions provider," said Sonoco CEO Harris DeLoach.
CorrFlex, also doing business as CorrFlex Display & Packaging, has approximately 900 employees at 14 locations in the United States. The company designs, manufactures, assembles, packs and distributes temporary, semi-permanent and permanent POP displays as well as providing contract packaging and co-packing and fulfillment services for major consumer product companies.
"POP, more effectively than any other medium, provides companies with the opportunity to put their products in front of consumers at a place and time when consumers are making actual buying decisions, this fits well into Sonoco's growth strategy" said DeLoach.
Sonoco's other offerings across the consumer packaging supply chain include global brand artwork management, through its Sonoco-Trident subsidiary, which helps companies ensure consistent graphics across all media.
The company's pack centers in North America and Europe, including the newest in Germany for Procter & Gamble, help manage customer packaging supply chain requirements from customised packing of products to distribution.
The acquisition, to be known as Sonoco CorrFlex, is expected to close by the end of the second quarter.