Toppan has closed the acquisition of the Thermoformed & Flexibles Packaging business (TFP) of Sonoco Products Company (Sonoco), a global leader in high-value sustainable packaging.
This acquisition is highly complementary, combining the robust sales network, customer base, and solution development capabilities of Sonoco’s TFP business with the technical expertise and manufacturing capabilities of the Toppan Group’s global packaging business.
“The integration of Sonoco TFP into the Toppan Group is a significant step to enhance our customer experience and provide our solutions on a global scale,” said Masahiko Tatewaki, head of Toppan Global Packaging business and managing executive officer of Toppan Inc. “We are extremely excited to welcome the experienced and talented Sonoco TFP team to the Toppan Group.”
TFP is a leading thermoformed and flexible packaging business serving a wide range of customers in food, retail, and medical verticals. TFP provides a variety of complex packaging to value-added categories including snacks, condiments, healthcare, prepared meals, fresh products, coffee, and pet food. On a pro forma standalone basis, TFP generated revenue of approximately $1.3 billion in 2023.
As part of this transition, TFP will now operate under the Toppan name, with its financial results reported in Toppan’s living and industry segment. Russell Grissett, a respected leader with over 30 years of experience at Sonoco, has been appointed CEO of the new company, reporting to Masahiko Tatewaki. Under Russell’s leadership, the existing management team will remain in place to ensure business continuity and operational excellence.
Toppan Packaging and Toppan Specialty Films
With this acquisition, the TOPPAN Group enhances its position as one of the largest global packaging converters, operating more than 60 manufacturing sites in 12 countries. To improve customer experience, the TOPPAN Group continues to standardize and streamline its operations globally. In addition, the TOPPAN Group plans to launch two business units: TOPPAN Packaging for the packaging business and TOPPAN Specialty Films for the high-performance film business, including GL BARRIER1.
The Toppan Group’s Strategy
The Toppan Group aims to be a leading solution provider addressing global issues. Under the current medium-term-strategy, the Toppan Group has been transforming its portfolio, and one of its key strategies is to drive sustainable packaging solutions at global scale.
The vision of the Toppan Group’s packaging business is “Change the World through Packaging Innovation,” and its mission is to “Foster a society focused on well-being and sustainability, while safeguarding our planet for future generations, through the continuous development of innovative packaging solutions that explore cutting-edge materials and technologies.”
The Toppan Group has been driving innovation in the development of sustainable packaging solutions by establishing a global supply chain from film manufacturing to packaging manufacturing, and optimizing cost to meet brand owners’ needs locally and globally.
Advisors
Houlihan Lokey acted as lead financial advisor and Morrison & Foerster LLP acted as legal advisor to Toppan. Mitsubishi UFJ Morgan Stanley Securities also acted as financial advisor to Toppan.
Goldman Sachs & Co. LLC acted as lead financial advisor and Freshfields LLP acted as legal advisor to Sonoco. RBC Capital Markets, LLC also acted as financial advisor to Sonoco.
TOPPAN Holdings’ first US-based CVC Investment Fund
TGVP Fund I, LP closes with a total of approximately US$52 million aimed at accelerating venture capital investment focused on digital transformation and sustainability in the US.
Toppan Holdings has decided to make an additional investment as a limited partner (LP) in TGVP Fund I, LP (Fund I), which is managed by TGVP (Legal name: Toppan Global Venture Partners, Inc.), a Toppan Holdings subsidiary.
In the additional closing for Fund I, the participation of Fund Corporation for the Overseas Development of Japan’s ICT and Postal Services (JICT) was confirmed, bringing the total size of the fund to approximately US$52 million as of the end of March this year.
Background and Aims of Fund I
Toppan Holdings has invested in or formed alliances with more than 60 promising startups in and outside Japan since 2016. The company is advancing its business in collaboration with such startups to achieve its medium-term plan, which sets out a vision of becoming a leading provider of solutions to social issues worldwide through digital transformation (DX) and sustainable transformation (SX).
TGVP launched Fund I in June 2022 to accelerate business development centered on investment outside Japan. TGVP’s base of operations in Silicon Valley has been strengthened by a team that brings together partners with more than 20 years of investment experience and experts in various fields from TOPPAN Holdings. With a focus on North America, the company has advanced investment and business development prioritizing the areas of DX and SX by working with innovative startups with the technologies to develop new eco-friendly services and products.
The participation of a new LP investor will help to further accelerate the TOPPAN Group’s business development and portfolio transformation.
