Alcoa today announced that Latas de Aluminio (Latasa), an aluminium can business based in Sao Paulo, Brazil has agreed to be sold to London-based Rexam for $462 million, including the assumption of debt. The acquisition is expected to make Rexam the world’s largest can-making company.
Latasa, a leading producer and supplier of aluminium beverage cans in South America, is 37% owned by Alcoa, 39% owned by Bradesco Seguros, 12% by JP Morgan International Capital Corporation and 12% by others. Alcoa is the managing partner of Latasa.
The transaction is expected to be completed by the end of November 2003 and is subject to the completion of traditional conditions and a rights issue by Rexam that will be used to finance part of the acquisition.
In 2002, Latasa had approximately $400 million in sales. It operates six facilities in Brazil, one in Chile and another in Argentina.
The sale is part of Alcoa’s divestiture program announced in January. Proceeds from the sale will be used to reduce debt.