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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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) March 30, 1998
SONOCO PRODUCTS COMPANY
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(Exact name of registrant as specified in its charter)
SC 1-11261 57-0248420
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(State of (Commission File Number) (IRS Employer
incorporation) Identification No.)
North Second Street, Hartsville, South Carolina 29551-0160
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(Address of principal executive offices) (Zip Code)
(803) 383-7000
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(Registrant's telephone number,
including area code)
NA
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(Former name or former address, if changed since last report)
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Item 5. Other Events.
Sonoco Products Company has substantially completed the previously
announced sales of its North American labels and industrial containers
operations.
The sale of Sonoco's North American labels operations to CCL Industries
Inc., of Willowdale, Ontario includes seven labels facilities in the United
States, one in Mexico, and one in Puerto Rico. The sale of the labels facility
in Puerto Rico has not closed but is expected to do so during the second quarter
of 1998. When fully completed, the North American labels sale will result in
cash proceeds of approximately $100 million. A one-time asset impairment charge
of $174.5 million after tax was recognized in the fourth quarter of 1997 related
to the assets held for sale.
The sale of the fibre and plastic drums operations of Sonoco's
industrial containers business to Greif Brothers Corporation includes 20
facilities in the United States and one in Mexico. The sale of the remaining
portion of Sonoco's industrial containers business, intermediate bulk
containers, consisting of one plant in Lavonia, Georgia, has not closed but is
expected to do so during the second quarter of 1998. When fully completed, the
industrial containers sale will result in cash proceeds of approximately $225
million and a one-time, after-tax gain of approximately $55 million.
The net cash proceeds from both of these sales, when fully completed,
should be approximately $300 million, of which $150 million will be used to fund
the previously announced stock repurchase program that is about two-thirds
complete. The remainder will be used for debt reduction and other corporate
purposes. As announced on March 30, 1998, the Company has commenced a fixed
spread tender offer for any and all of its 9.20% Debentures due August 1, 2021.
The purchase of the Debentures will result in an extraordinary charge against
earnings in the second quarter of 1998 of up to $20 million, assuming that all
Debentures are tendered.
Sonoco's decision to sell the labels and industrial containers
businesses was based on the conclusion that neither of these businesses fit the
Company's long-term strategic objectives and that its shareholders would be
better served if Sonoco's resources were concentrated on its other businesses
that meet its strategic criteria.
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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 thereunto duly authorized.
SONOCO PRODUCTS COMPANY
By /s/ F. Trent Hill, Jr.
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Name: F. T. Hill, Jr.
Title: Vice President and
Chief Financial Officer
Date: April 14, 1998