Ball sells plastic pail plant for $32m

The plant manufactures injection-moulded plastic pails and drums for packaging products such as building materials and pool chemicals; and was acquired by Ball in 2006 as part of its purchase of Can Corporation.

Ball chief operating officer John Hayes said the sale was consistent with the firm’s strategy of focussing on core business segments. Earlier this month, Ball completed its $577m purchase of four drinks can and end plants from drinks giant AB InBev.

BWAY president and chief executive, Ken Roessler said that it expects to “realise significant synergies, including potential future plant rationalisations”, although did not say if there would be any job losses.

“This business is an excellent fit with the company’s core market add-on acquisition strategy,” he added.

“In addition to sales and market share growth, this acquisition provides further product portfolio expansion through the addition of well-established screw-top pail designs, which supports the company’s goal of positioning BWAY as the premier supplier for rigid general line packaging.”

In a separate development, the firm announced a number of plant closures as a result of its acquisition of Chicago-based Central Can Company in August.

BWAY said it will close two metal packaging plants located in Chicago and Brampton and move “business and certain equipment” into the newly acquired Central Can Company facility.

It said the “Chicago plant consolidation” would “create the second largest plant in the company’s manufacturing network” and lead to “annual synergies” estimated at $6m.

Roessler said: “An important element of our add-on acquisition strategy is the opportunity for significant synergies.”

“The Central Can acquisition clearly met this criterion with expected savings in the areas of purchasing, freight, SG&A (selling, general and administrative expenses) and manufacturing overhead.”

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