Ball Corporation will acquire some assets of Alcan Packaging
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Metal and plastic packaging products supplier Ball Corporation will acquire certain North American plastic bottle container assets of Alcan Packaging for US$180m in cash. The transaction is expected to close by the end of the first quarter of 2006, subject to certain government approvals and customary closing conditions.Ball will acquire three Alcan plastic container manufacturing plants, in Illinois, Ohio and Ontario. Ball will also acquire certain equipment and other assets at Alcan’s California plant and at its Wisconsin research facility and will continue to operate at those locations during 2006.
The business being sold by Alcan Packaging is a leading producer of barrier polypropylene plastic bottles in the US, largely for foods. The business also manufactures barrier polyethylene terephthalate (PET) plastic bottles, and currently employs about 470 people.
Alcan Packaging CEO and president Christel Bories says the sale is part of Alcan Packaging’s ongoing refocusing of its global activities on selected growth segments.
"With this sale, Alcan Packaging takes another significant step in our continued strategy of focusing resources on markets where we enjoy scale and leadership positions," says Bories.
Ball president, chairman and CEO, R David Hoover says this acquisition enables Ball to supply a broad range of blue chip customers, some of whom are new to the company and some of whom know Ball well through its metal food container operations.
“In addition, these manufacturing plants complement our existing plastic container operations and offer some significant technology opportunities," says Hoover.
Ball reported 2005 sales of US$5.7bn and the company employs 13,100 people worldwide.
