News
Ball buys four AB InBev drinks can plants in $577m deal
Ball Corporation has announced it is to buy four AB InBev soft drinks can manufacturing plants in the US, in a deal worth $577m.
Ball expects the acquisitions to contribute some $774m in revenues each year after the deal is completed in late 2009 or early 2010 subject to regulatory approval.
Ball president and chief executive R. David Hoover said the acquisitions fitted into the firm's global growth strategy. "These are well-maintained, high-volume manufacturing assets that are run by very skilled, experienced can and end makers," he said.
More than two thirds of the plants' 10bn can output will be sold to soft drinks companies with the rest destined for AB InBev.
Goldman, Sachs & Co and J.P.Morgan Securities are acting as Ball's finacial advisors on the deal.
AB InBev's US subsidiary, Metal Container Corporation, will still have seven can and end manufacturing plants, which account for 60% of output, and will continue to serve the beer industry.
Chief executive Carlos Brito said the sale was another step in the drinks firm's de-leveraging programme and was pleased to have found a buyer that was going to retain staff.
"The sale allows us to rationalize capital while retaining those facilities that remain most relevant to our beer business," he said.
BALL-AB INBEV DEAL
Cost $577m
Beverage can sites Rome, Georgia; Colombus, Ohio; Fort Atkinson, Wisconsin
Can end site Gainsville, Florida
Total staff 635
Total annual output 10bn cans and easy-open ends
Predicted annual revenues $774m
Ball: "well-maintained, high-volume assets"
