Written on: January 27, 2022 by SprayTM
Platinum Equity announced on Jan. 27 that the sale of Ball Metalpack to Sonoco in a transaction valued at approximately $1.35 billion has been completed.
Ball Metalpack, based in Broomfield, CO, manufactures sustainable steel containers for aerosol products, food, household consumables, pet food, nutritional and other products in the U.S.. It was formed as a joint venture between Platinum Equity and Ball Corp. in 2018. Platinum Equity owned 51% of the business and Ball Corp. owned 49%.
The sale is the culmination of a comprehensive three-year transformation program through which Platinum Equity and Ball established Ball Metalpack as a standalone enterprise, then drove a broad range of operational improvements throughout the business. Priorities for the transformation program included footprint optimization, new product development, expansion of the company’s capabilities, and investments in growth and operational excellence. Ball Metalpack has invested approximately $100 million in state-of-the-art manufacturing infrastructure since 2018.
“We are proud of our partnership with Ball Corporation and everything we accomplished working together over the past three years,” said Platinum Equity Partner Louis Samson. “By joining forces we were able to deliver on behalf of the company and its shareholders. This investment is another successful story of aligning our interests with those of one of the world’s leading corporations and delivering value for both of us.”
Ball joins Caterpillar (Neovia Logistics), Emerson (Artesyn Technologies and Vertiv), and Telstra (Sensis) on the list of companies that have participated in equity upside along with Platinum Equity.
“This investment brought together Platinum’s decades of experience in corporate carve outs with our well-defined playbook for creating value in the packaging space. We will continue putting both to work in pursuit of new opportunities,” said Platinum Equity Managing Director Delara Zarrabi. “We are grateful for everything Jim Peterson and the Ball Metalpack team have done and we believe Sonoco is the ideal home going forward.”
Goldman Sachs served as financial advisor to Ball Metalpack on the sale to Sonoco. Latham & Watkins LLP served as Platinum Equity’s legal counsel on the transaction. Skadden, Arps, Slate, Meagher & Flom LLP served as legal counsel to Ball Corporation.