Alcoa has completed the sale of its packaging and consumer businesses to New Zealand’s Rank Group for approximately $2.5B in cash. An additional $200M is expected by April, 2008, when regulatory and other approvals are received for a small number of facilities.
The acquired businesses include Closure Systems International, Consumer Products, (including Reynolds Wrap branded products), Flexible Packaging and Reynolds Food Packaging. With about 9,300 employees in 22 countries around the world, they generated some 11 per cent of Alcoa’s 2007 revenues and approximately 4.6 per cent of 2007 after-tax operating income.
Alcoa will continue to operate its flat-rolled can sheet products serving the packaging market.
