Alcoa buys the whole package

Alcoa has entered into an agreement to acquire Chicago-based Ivex Packaging Corporation in a deal worth approximately $790 million.

Alcoa has entered into an agreement to acquire Chicago-based Ivex Packaging Corporation. In the deal, the shareholders of Ivex will receive $21.50 per share in cash.

The total enterprise value of the acquisition, including the assumption of debt, is approximately $790 million. The acquisition will exclude Ivex’s 48.2% interest in the common stock of Packaging Dynamics Corporation, which will be distributed to Ivex’s shareholders.

Ivex, a manufacturer of specialty plastic packaging for the food, electronic, medical, and retail markets, had revenues totalling $643 million in 2001. Ivex has approximately 3,700 employees primarily in North America, as well as Europe and Southeast Asia. It will become part of Alcoa’s global packaging and consumer business.

Alcoa expects the transaction to be accretive to earnings within the first year and estimates the potential for annual synergies to be $75 to $100 million within three years.

Alcoa’s global packaging and consumer segment had $2.7 billion in revenues and an after-tax operating income of $185 million in 2001.

The transaction is subject to the approval of Ivex shareholders and customary regulatory approvals. The parties expect the transaction to be completed during the second quarter of 2002.

On the web