Sonoco announced it has signed a definitive agreement to acquire Thermoform Engineered Quality, LLC, and Plastique Holdings, LTD, (together TEQ), a global manufacturer of thermoformed packaging serving healthcare, medical device and consumer markets, from ESCO Technologies, Inc. for approximately $187 million in cash.

TEQ, headquartered in Huntley, IL, produced sales of $88 million in the fiscal year ended Sept. 30, 2018, and operates three thermoforming and extrusion facilities in the United States along with a thermoforming operation in the UK, and thermoforming and molded-fiber manufacturing in Poland. Each facility has state-of-the-art cleanroom capabilities, enabling the production of sterile, barrier packaging systems for pharmaceuticals and medical devices. In addition, TEQ produces recyclable, molded-pulp-fiber packaging and thermoformed plastic packaging for multiple consumer products primarily in Europe. The company has approximately 500 associates.

“Recent studies value the global healthcare packaging market at approximately $33 billion, with healthy growth expected for the future,” said Rob Tiede, Sonoco president and CEO. “Increased life expectancy, the steady introduction of new products from medical device manufacturers and pharmaceutical companies, combined with requirements for improved safety and compliance, are driving market growth. TEQ provides a strong platform to further expand Sonoco’s growing healthcare packaging business, which includes our best-in-class ThermoSafe temperature-assured pharmaceutical packaging; injection-molded vials, multi-cell cuvettes and appliances; thermoformed trays for medical devices and OTC medical products, along with our Alloyd heat-sealing equipment for commercial medical applications.”

Sonoco’s acquisition of TEQ is subject to normal regulatory review and projected to be completed by the end of 2019. There are no planned changes in TEQ’s leadership or customer relationships.