US global packaging manufacturer Sonoco has acquired a two-thirds stake in Brazil-based flexible packaging company Graffo.
The transaction, which is expected to close in the second quarter of 2015, gives Sonoco a majority interest in Graffo and will enable Sonoco to grow its presence in South Africa.
Founded in 2001, Graffo had sales of approximately $35 million in 2014. It operates high-quality rotogravure printing presses, including a new 10-color press, as well as sophisticated lamination applications at its Pinhais facility.
With approximately 230 employees, Graffo serves the confectionery, dairy, pharmaceutical, cosmetic and industrial markets in Brazil.
Jack Sanders, President and Chief Executive Officer at Sonoco commented, “We’re extremely pleased to join Graffo with Sonoco’s growing global flexible packaging business. We were looking to invest jointly in Brazil with a partner who has strong technical capabilities and established relationships with both large global consumer product companies and growing local businesses, where we could bring our customer relationships and technical capabilities to grow our presence in this important emerging market.”