Amcor Ltd., an Australia-based packaging company, has agreed to purchase the Ball Plastics Packaging Americas business from Ball Corp. for US$280-million.
The price for the Broomfield, Colorado-based Ball Corp. includes $265-million in cash, and $15-million in considerations, and is expected to close during Q3 in 2010 subject to U.S. regulatory approval.
For Amcor, the purchase will allow it to expand its position in the personal car, food and liquor markets in North America while helping it leverage new technologies and products in the Latin American markets.
According to Ball, at year end March 28, 2010, it had sales of $580-million with earnings before tax of approximately $10-million.
The deal includes fives American plants affecting 1000 workers in Ames, Iowa, Batavia, ILL, Belevue, OH, China, CA and Delran, NJ. These plants are involved in the manufacture of PET (polyethylene terephthalate) and polypropylene bottles.
On a related note, Amcor recently announced plans to merge its U.S. and Australian packaging divisions, transferring the head of the American unit to its Melbourne, Australia headquarters.
For more information, visit www.amcor.com.