Ball Corporation has announced that it has entered into a definitive agreement to acquire US Can Corporation’s US and Argentinian operations for approximately 1.1m shares of Ball common stock and the repayment of US$550m of US Can’s debt.
US Can’s shareholders will retain its European business.
With 2,300 staff and sales of around US$600m, US Can is America’s largest aerosol can producer, also manufacturing paint cans, plastic containers and custom and speciality cans at 10 US plants. Aerosol containers are also produced at two factories in Argentina.
“US can will add to our portfolio of rigid packaging products and provide us a meaningful position in a sizeable market,” says Ball Corporation chairman, president and ceo R David Hoover. “This is a company in an industry we know well. 2006 looks to be a better year for Ball, and this acquisition should add to our performance as we expect it will be accretive to our earnings during the first year of our ownership.
“Further, we expect to realise certain cost reductions as a result of synergies between US Can’s operations and those of our existing packaging business, particularly our metal food container operations. Both utilise tinplate steel and both share similar manufacturing processes.”
