Alcoa Completes Sale of Packaging Units
Friday February 29, 12:49 pm ET
Alcoa Completes $2.7 Billion Sale of Packaging and Consumer Business to Rank Group
NEW YORK (AP) -- Aluminum maker Alcoa Inc. said Friday it has completed the sale of its packaging and consumer businesses to Rank Group Ltd., a private New Zealand company, for $2.7 billion in cash.
Alcoa, which said it was considering selling the businesses in April, announced the deal in December.
The company said it received about $2.5 billion in cash from Rank in the sale and expects the additional $200 million by April, when regulatory and other approvals are received for a small number of facilities.
The sale includes Alcoa's Closure Systems business, which makes plastic and aluminum packaging closures for food, drink and personal care products, and its Flexible Packaging unit, which makes pouch and blister packaging, shrink labels and foil lids for drug, food and other uses.
The sale also includes consumer products, including Reynolds Wrap food and foil wraps, and Reynolds Food Packaging, which serves the food service, supermarket, agricultural and other markets.
The packaging businesses have about 9,300 employees in 22 countries.
Alcoa will continue to operate its flat-rolled can sheet products for the packaging market.
Lehman Brothers acted as Alcoa's financial adviser on the deal.
Alcoa shares fell 78 cents, or 2 percent, to $38.34 in midday trading. The stock has traded between $26.69 and $48.77 during the past 52 weeks
biz.yahoo.com |
