10:04 AM EDT, 06/24/2024 (MT Newswires) -- Sonoco Products ( SON ) will acquire metal packaging company Eviosys from private equity firm KPS Capital Partners for roughly $3.90 billion in a deal that's expected to widen its market and bolster adjusted earnings per share.

The cash-free, debt-free deal will expand Sonoco's packaging operations in Europe, Middle East, and Africa, as Eviosys has 44 manufacturing facilities and about 6,300 employees, Sonoco said in a statement Monday. The combination of Eviosys' EMEA operations with Sonoco's existing position in the US will expand its total addressable market in metal packaging to roughly $25 billion globally, the company said.

Sonoco expects $100 million of potential synergies from the integration of its metal can business with Eviosys over the next 24 months. The packaging company said it expects to become the "leading" can and aerosol packaging manufacturer globally following the deal. Sonoco expects Eviosys revenue in 2024 to total about $2.5 billion and adjusted earnings before interest, taxes, depreciation and amortization to come in at roughly $430 million.

Eviosys was formed in 2021 following KPS Capital's acquisition of Crown's (CCK) food and consumer packaging business in Europe, Middle East, and Africa.

"Eviosys brings extensive global reach and an attractive, growing customer base that perfectly complements our existing metal packaging offering," Sonoco Chief Executive Officer Howard Coker said in a statement. "We are focused on unlocking new opportunities in attractive end-markets, providing our customers with a stronger value proposition and generating strong returns for our shareholders."

Sonoco also plans to divest its temperature-controlled packaging business, ThermoSafe, along with some other operations. The divestitures are expected to produce at least $1 billion over the next 12 to 18 months, the company said.

Sonoco expects the Eviosys deal to be "immediately" accretive to its adjusted earnings per share and over 25% accretive to EPS estimates for 2025. In April, Sonoco cut full-year 2024 EPS guidance to a range of $5 to $5.30 from its previous guidance of $5.10 to $5.40.

Sonoco plans to fund the Eviosys transaction with new debt and the proceeds from an issuance of up to $500 million in equity. KPS Capital has agreed to invest up to $200 million in Sonoco to support the acquisition through the equity offering.

The deal is expected to close by the end of 2024. Eviosys's current CEO, Tomas Lopez, will remain with Sonoco and lead the company's EMEA metal packaging business.

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