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Ball reaches agreement with Ardagh

Ball reaches agreement with Ardagh

Ball Corporation has announced it and Rexam have entered into an agreement with Ardagh Group to sell select metal beverage can assets, support locations and functions in Europe, Brazil and the US for approximately $3.42 billion in order to satisfy certain regulatory requirements in connection with its proposed acquisition of Rexam.

Completion of the sale of the divestment business is subject to a number of conditions, including receipt of certain regulatory approvals and completion of Ball’s acquisition of Rexam. The sale of certain European assets within the divestment business is subject to completion of mandatory employee consultation processes.

Pursuant to the equity and asset purchase agreement, Ball will sell seven Rexam metal beverage can manufacturing plants and one Rexam end plant in the US; eight Ball beverage can manufacturing plants, two Ball end plants and two Rexam beverage can manufacturing plants in Europe; two Ball beverage can manufacturing plants in Brazil; and certain innovation and support functions in Bonn, Germany; Chester, UK; Zurich, Switzerland; Sao Paulo, Brazil; and Chicago and Elk Grove, Illinois, in the US. Such divested assets had 2015 revenues of approximately $3 billion and EBITDA of approximately $375 million.

Subject to final global regulatory approvals and approval of the requisite majorities of Rexam ordinary shareholders at the court meeting and general meeting, Ball expects to close on its proposed offer for Rexam by the end of June 2016. A further detailed timeline will be released in due course.

Assuming a successful completion of Ball’s proposed offer for Rexam, the combined Ball global metal beverage business will operate 75 metal beverage manufacturing facilities and joint ventures, as well as various support locations, in the following global regions: North and Central America, Europe and Russia, South America and Asia, Middle East and Africa.
Assuming a successful completion of the transaction, Ball will remain a New York stock exchange listed company domiciled in the US with global headquarters in Broomfield, Colorado.

In addition, Ball believes that after the consummation of the acquisition of Rexam and taking into account the disposal of the divestment business, it will be able to achieve net annual cost synergies in excess of $300 million by the end of the third financial year.

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