The companies say the purchase is an opportunity for both to reach full potential.
By Jim Frankowiak | Special to the Plant City Observer
Plant City-based Highland Packaging Solutions, a privately-held global manufacturer of agricultural and dairy packaging, has agreed to be purchased by Sonoco, one of the largest diversified packaging companies in the world. The approximately $150 million cash transaction includes Highland’s Plant City manufacturing plant and five warehouse facilities located throughout the U.S. and is expected to be completed during the second quarter of 2018.
Owned by Chief Executive Officer Steve Maxwell and John Durham along with key members of the Highland management team, the company has grown dramatically since it was acquired by Maxwell and Durham in 2005. Once a regional supplier of agricultural packaging, Highland has grown to serve domestic and international customer bases. The company, which has some 425 employees, posted sales in excess of $100 million in 2017.
Founded in 1899, Sonoco is a worldwide provider of a variety of consumer packaging, industrial products, protective packaging and displays and packaging supply chain services. The company has 21,000 employees and operations in 33 countries, and posts annual sales in excess of $6 billion.
Highland’s ability to develop packaging that successfully addressed environmental concerns of one of its rapidly growing customers created a need for manufacturing expansion at a very substantial cost. Maxwell reached out to Sonoco, one of a number of entities that had expressed prior interest in Highland.
Maxwell said the sale was a seven-month process that included personal meetings and countless communications with Sonoco CEO Rob Tiede and others within the organization.
“For Highland, this agreement will enable us to further enhance our speed to service and our ability to offer customers the most diverse consumer packaging formats and solutions in the industry” Maxwell said.
The Highland brand will live on and be introduced to its sister companies within Sonoco, “significantly strengthening our Perimeter of the Store strategy,” Tiede said, “serving the consumers’ growing demand for fresh and natural foods.”
