03:48 PM EDT, 09/08/2025 (MT Newswires) -- Sonoco Products ( SON ) said Monday that it agreed to sell its ThermoSafe packaging business to Arsenal Capital Partners for up to $725 million as part of the company's efforts to streamline its operations.

The purchase price reflects $650 million, plus up to $75 million to be paid by the private equity investment firm based on certain performance criteria for 2025, according to the statement, which was also published on Arsenal's website.

The transaction, which requires regulatory approval, is anticipated to complete by the end of this year. The divestiture completes the company's bid to become a global metal and fiber packaging business.

"With the planned sale of ThermoSafe, we are completing the next step in Sonoco's portfolio transformation, which has resulted in significantly streamlining our operations from a large portfolio of diversified businesses into two core global business segments, " Sonoco Chief Executive Howard Coker said.

ThermoSafe, a provider of temperature-controlled packaging solutions, generated sales of more than $240 million last year and roughly $50 in proforma adjusted earnings before interest, taxes, depreciation, and amortization.

"Our transformation enables us to deliver more sustainable growth that build on our strengths and allow us to drive value for our customers," Coker said.

Sonoco intends to use net proceeds from the asset sale to repay existing debt.

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