Sonoco to Acquire Clear Pack Company to Expand Rigid Plastic Container Operations

Sonoco (NYSE: SON), the global packaging company, today announced that it has signed an agreement to acquire Clear Pack Company, a privately held vertically integrated manufacturer of thermoformed and extruded plastic materials and containers, based in Franklin Park, Ill. Terms of the transaction were not disclosed. The transaction is expected to close in the fourth quarter of 2006, pending regulatory approval, and is expected to be slightly accretive to earnings in 2007.

Clear Pack was founded in 1968 and has annual sales of approximately $45 million. The company operates a 240,000 square foot manufacturing and warehouse facility in Franklin Park that produces commercial roll stock and thermoformed products. Clear Pack has 14 high-speed, roll-fed thermoformers capable of running high-impact polystyrene (HIPS), polypropylene (PP), high- density polyethylene (HDPE) and oriented polystyrene (OPS). The company has five extrusion lines capable of extruding a variety of high-impact polystyrene and polypropylene blends. The company also has co-extrusion capabilities as well as in-line lamination for application of multilayer laminates to meet chemical resistant and barrier requirements.

In commenting on the acquisition, Charles Sullivan, executive vice president, said, "This strategic acquisition significantly expands Sonoco's rigid plastic capabilities and allows us to further provide our customers with an even broader range of plastic packaging and closure solutions."

Clear Pack produces plastic containers for several consumer product and food service companies, including packaging for single-serve condiments, fresh produce and other food service needs.

"Clear Pack is a market leader with more than 35 years of experience in thermoforming," said Rodger Fuller, vice president and general manager of Sonoco's Rigid Paper and Plastics division, North America. "Clear Pack's dedicated employees have built an excellent reputation with their customers for producing high-quality, custom-designed products that utilize their proprietary technology."

Sonoco's rigid plastic operations are an innovative solutions provider of blow molded, thermoformed, extruded and injection-molded plastic containers, closures and other products for the food and nonfood markets, including containers for liquid beverages, processed foods, sauces, pet foods, powdered beverages and snacks, as well as household chemicals, industrial chemicals, adhesives and sealants, and personal care.

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