Hartsville, South Carolina-based Sonoco (NYSE: SON) says it entered into a definitive agreement to acquire Ball Metalpack — a leading manufacturer of sustainable metal packaging for food and household products and the largest aerosol producer in North America — for $1.35 billion.

The cash offer does not take into consideration tax benefits with an estimated net present value of approximately $180 million, Sonoco said.

Ball Metalpack, headquartered in Broomfield, Colorado, is a joint venture owned by Platinum Equity and Ball Corporation (NYSE: BLL). The company produces steel tinplate food and aerosol cans, as well as closures and packaging components from eight operations in Canton and Columbus, Ohio; Milwaukee and Deforest, Wisconsin; Chestnut Hill, Tennessee; Horsham, Pennsylvania; and Oakdale, California.

Ball Metalpack is projected to generate approximately $850 million in revenue and $111 million of adjusted EBITDA in 2021.

“This acquisition fits our strategy of investing in Sonoco’s core businesses as it complements our largest Consumer Packaging franchise — our iconic global Paper Cans and Closures business,” said Howard Coker, Sonoco president and CEO. “In addition, it further expands our already established sustainable packaging portfolio with metal packaging, which is the most recycled packaging substrate in the U.S. We’ve had a long relationship with the Ball Metalpack team, including previously owning and operating two of their manufacturing facilities in Canton. With a comprehensive and innovative product portfolio that has received significant recent investments in new technology and capacity, we believe the addition of Ball Metalpack will further strengthen our stable cash flow generation while driving solid earnings accretion.”

Once the deal is finalized, Sonoco says it anticipates the acquired business’ financial results will be reported in the Company’s Consumer Packaging segment.

Jim Peterson, CEO of Ball Metalpack, will continue to lead the business alongside a tenured management team that has more than 90 years of experience.

Sonoco says there are no expected changes in operations or customer relationships as a result of the transaction.

Finalizing the acquisition is subject to satisfaction of customary closing conditions, including regulatory review, and is expected to be completed in the first quarter of 2022.