Ball to acquire four beverage packaging plants from AB InBev
Facilities produce annually approximately 10 billion cans and 10 billion can ends
-- Packaging Digest, 7/1/2009 10:16:00 AM
Ball Corporation announced that it has signed a definitive agreement with Anheuser-Busch InBev to acquire certain of AB InBev's beverage can manufacturing assets.
Ball will acquire four of AB InBev's plants in the U.S. for $577 million. The facilities being acquired are beverage can manufacturing plants in Rome, Ga.; Columbus, Ohio; and Ft. Atkinson, Wis., and a beverage can end manufacturing plant in Gainesville, Fla.
In the first full year of operation, Ball expects the plants to generate revenue and EBITDA of approximately $680 million and $94 million, respectively. The plants produce annually about 10 billion aluminum cans and 10 billion easy-open can ends. More than two-thirds of the cans are produced for leading soft drink companies and the rest for AB InBev. The facilities employ approximately 635 people.
The transaction is expected to close at the end of the year or early in the first quarter of 2010, subject to regulatory approval, and be accretive to Ball's earnings and cash flow in 2010.
"This acquisition fits well with our strategy to grow our worldwide beverage can business," said R. David Hoover, chairman, president and chief executive officer of Ball Corporation. "These are well-maintained, high-volume manufacturing assets that are run by very skilled, experienced can and end makers. We will vigorously pursue what we see as significant opportunities to share best practices, realize synergies and improve overall performance."
Source: Ball Corporation
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