Alcoa is to sell its packaging and consumer businesses to New Zealand’s Rank Group for $2.7bn in cash.
Businesses included in the sale are Closure Systems International, a manufacturer of plastic and aluminum packaging closures and capping equipment; Consumer Products, the maker of Reynolds Wrap and private label foil, wraps and bags; Flexible Packaging, manufacturers of laminated, printed, and extruded non-rigid packaging materials; and Reynolds Food Packaging, makers of stock and custom products for the foodservice, supermarket, food processor and agricultural markets.
In total, the packaging businesses have approximately 10,000 employees in 22 countries around the world. They generated approximately $3.2bn in revenues and $95m in after-tax operating income in 2006, representing approximately 10 percent of Alcoa 2006 revenues and approximately three per cent of after-tax operating income.
Alcoa will continue to operate its flat-rolled can sheet products serving the packaging market.
The purchaser, the Rank Group, is a privately-held company with operations in North America, Australasia, Europe, Asia, South America and the Middle East. It employs approximately 17,000 people.
The packaging deal is expected to be sealed by the end of the first quarter of this year.