Sonoco Products Company (SON) Shares Rise After Acquisition of Key Recycling Company

What’s going on with SON?

Shares of Sonoco Products Company (SON) rose today after Sonoco Recycling, a subsidiary of Sonoco, today announced the acquisition of American Recycling of Western North Carolina, a private recycler of recovered paper located in Asheville , North Carolina.

SON shares were up 0.68% to $ 58.10 on Friday at 11:23 a.m.

What does this mean for Sonoco Products Company?

Sonoco’s acquisition of American Recycling will complete the company’s portfolio in the North Carolina region, as American processes approximately 30,000 tonnes of recovered fibers per year at its Asheville material recovery plant.

American also plans to generate approximately $ 9 million in revenue in 2021 and is strategically located approximately 65 miles from Sonoco’s uncoated recycled cardboard plant in Newport, TN.

“This acquisition provides Sonoco’s plant operations with a stable, low-cost supply of recovered fiber with the opportunity to increase volumes in the region,” said Palace Stepps, division vice president and general manager of Sonoco Recycling.

Sonoco Recycling collects approximately 2.8 million tonnes of old corrugated cardboard containers, mixed papers, metals and plastics annually through its five material recovery facilities.

There are currently 20 recycling centers in which residential and commercial materials collected from the curb are processed.

SON has a fundamental rank of 41. Find out what that means to you and get the rest of the leaderboard on SON!

Over its more than 100 year history, Sonoco Products has steadily built up a diverse portfolio of industrial and consumer packaging product offerings such as flexible and rigid plastics, spools and spools, pallets and composite boxes. The company serves a variety of consumer and industrial end markets across North America. Sonoco has been increasing its dividend every year for over 30 years.