Alcoa, one of the world's leading producers of aluminium and packaging products, have agreed to sell their packaging and consumer businesses to the Rank Group of New Zealand in a US$ 2.7 billion cash deal. The transaction is expected to be completed by the end of the first quarter of 2008. Alcoa had announced in April 2007 that they planned to divest operations that did not fit in with their core businesses of aluminium metal and alumina.
Alcoa's packaging and consumer businesses clocked up revenues and post-tax operating profits of US$ 3.2 billion (10 per cent of Alcoa's total revenues) and US$ 95 million (3 per cent of Alcoa's operating profits) respectively in 2006. Included in these are plastic and aluminium closure systems, flexible packaging, foodservice containers and the well-known Reynolds wrap produced in 22 countries.
The Rank Group recently hit the headlines by acquiring SIG Combibloc, a leading liquid packaging business. Alcoa will, however, continue to operate its rolled sheet business that services the beverage can market |
