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Fitch Ratings has withdrawn Titan Holdings II B.V.'s (Eviosys) 'B+' Long-Term Issuer Default Rating (IDR).
Prior to withdrawal, the IDR was on Rating Watch Positive, where it was placed on RWP on 02 July 2024, pending the completion of Eviosys's acquisition by Sonoco Products Company (Sonoco; BBB/Stable).
The withdrawal follows the completion of the acquisition and redemption of all debt obligations of Eviosys and its related subsidiary, Kouti B.V.
Fitch has not resolved the RWP because the company's remaining operations and business profile, if any, and financial policy are uncertain. Eviosys will transition to the Sonoco brand over the coming months and operate under Sonoco's consumer packaging segment.
Therefore, Fitch will no longer have sufficient information to maintain the ratings. Accordingly, Fitch will no longer provide ratings or analytical coverage for Eviosys.
Key Rating Drivers
Acquisition Completed: The transaction between Sonoco and KPS Capital Partners was completed on 04 December 2024. Sonoco has a stronger credit profile than Eviosys and is one of the largest global packaging companies. Sonoco is three times larger in revenue and its EBITDA generation is over two times higher than Eviosys. Sonoco's business profile is characterised by a well-diversified product range in consumer and industrial packaging, as well as good geographical diversification, albeit concentrated on North America (78% of revenue in 2023).
Leverage Profile Post-Transaction: The acquisition was funded with about USD4 billion in new debt financing. Sonoco's 2023 proforma EBITDA leverage has increased to about 4.7x while reported EBITDA leverage stood at 3.0x as at end-2023. Nevertheless, Sonoco has a public commitment to deleveraging in the coming 24 months. Fitch forecasts an improvement in Sonoco's leverage profile, which should be supported by planned divestures.
For further information on key rating drivers of Sonoco see the rating action commentary published on our web-site in September 2024:
https://www.fitchratings.com/research/corporate-finance/fitch-rates-sonoco-products-company-proposed-senior-unsecured-notes-bbb-17-09-2024
RATING SENSITIVITIES
Not applicable as the ratings have been withdrawn.
Liquidity and Debt Structure
Rating withdrawn, not applicable.
Issuer Profile
Eviosys is the largest metal food can producer in Europe with a market share of about 39% and 44 manufacturing facilities across 17 countries.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Click here to access Fitch's latest quarterly Global Corporates Macro and Sector Forecasts data file which aggregates key data points used in our credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. For more information on Fitch's ESG Relevance Scores, visit https://www.fitchratings.com/topics/esg/products#esg-relevance-scores.
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