SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
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Date of Report (Date of earliest event reported): August 8, 2001
SONOCO PRODUCTS COMPANY
Incorporated under the Commission File No. 1-11261 I.R.S. Employer
laws of South Carolina Identification No.
57-0248420
Post Office Box 160
Hartsville, South Carolina 29551-0160
Telephone: 843-383-7000
Item 5. Other Events
(a) On August 8, 2001, Sonoco Products Company (the "Company") signed a
definitive agreement to purchase Phoenix Packaging Corporation for cash. The
purchase has received necessary regulatory approval and is expected to close by
the fourth quarter of 2001.
Phoenix Packaging, a privately-owned company headquartered in North Canton,
Ohio, manufactures steel easy-open closures that can be used with metal, plastic
and composite containers at two facilities in the Canton area. Phoenix had 2000
sales of approximately $80 million. The acquisition is expected to be
immediately accretive to earnings.
(b) On August 24, 2001, the Company completed its all-cash purchase of
privately-owned U. S. Paper Mills Corp. U. S. Paper Mills is headquartered in
DePere, Wisconsin and also has operations in Menasha, Wisconsin; Oakdale,
Minnesota; and Jacksonville, Illinois. U. S. Paper Mills' principal businesses
are the production and sale of lightweight paperboard for conversion into cores,
composite cans and tubes, and the production of paper tissue and towel cores.
This acquisition will bring the Company's total number of paper mills globally
to 30, with 42 paper machines and total global capacity of approximately 1.75
million tons.
The purchase of U.S. Paper Mills, which had 2000 sales of approximately $70
million, is expected to be slightly accretive to earnings in the first year.
(c) On September 4, 2001, the Company completed its acquisition of a
paper-based textile tube converting facility in Kaiping, China. The equipment
and building at the facility are leased and the facility has current sales of
approximately $2 million. This acquisition is expected to provide a base from
which to expand operations into southern China.
(d) On September 10, 2001, the Company signed a definitive agreement to
purchase Hayes Manufacturing Group, Inc., for cash. The purchase is subject to
regulatory approval and is expected to close in the fourth quarter of 2001.
Hayes Manufacturing, a privately owned company headquartered in Neenah,
Wisconsin, manufactures paper-based tubes and cores serving the paper, plastic,
foil/metal, paper converters, tape/label and construction industries.
The purchase of Hayes Manufacturing, which had 2000 sales of approximately
$56 million, is expected to be accretive to earnings in the first year.
Statements included herein that are not historical in nature are intended
to be, and are hereby identified as, "forward-looking statements" for purposes
of the safe harbor provided by Section 21E of the Securities Exchange Act of
1934, as amended. Such forward-looking statements are based on current
expectations, estimates and projections about the Company's industry,
management's beliefs and certain assumptions made by management. Such
information includes, without limitation, discussions as to estimates,
expectations, beliefs, plans, strategies and objectives concerning the Company's
future financial and operating performance.
These statements are not guarantees of future performance and are subject
to certain risks, uncertainties and assumptions that are difficult to predict.
Therefore, actual results may differ materially from those expressed or
forecasted in such forward-looking statements. Such risks and uncertainties
include, without limitation: availability and pricing of raw materials; success
of new product development and introduction; ability to maintain or increase
productivity levels; international, national and local economic and market
conditions; ability to maintain market share; pricing pressures and demand for
products; ability to successfully integrate newly acquired businesses into the
Company's operations; continued strength of the Company's paperboard-based tube,
core and composite can operations; and currency stability and the rate of growth
in foreign markets. Additional information concerning some of the factors that
could cause materially different results is included in the company's reports on
Forms 10-K, 10-Q and 8-K filed with the Securities and Exchange Commission. Such
reports are available from the Securities and Exchange Commission's public
reference facilities and its Internet website or from the Company's investor
relations department.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
SONOCO PRODUCTS COMPANY
(Registrant)
Date: September 12, 2001 By: /s/ F. T. Hill, Jr.
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F. T. Hill, Jr.
Vice President and
Chief Financial Officer