Ball Corporation announced June 15 that it has entered into an agreement to sell its plastic packaging, Americas, business to Amcor Limited for approximately $280 million ($265 million cash at closing and $15 million of contingent consideration). The proceeds are subject to customary closing adjustments. Ball also announced that its board of directors has authorized the repurchase by the company of up to a total of 12 million shares of its common stock. This repurchase authorization replaces all previous authorizations.
The sale of Ball's plastic packaging business includes five U.S. plants that manufacture polyethylene terephthalate (PET) bottles and preforms and polypropylene bottles, as well as associated customer contracts and other related assets. For the 12 months ended March 28, 2010, the business had sales and adjusted EBIT of approximately $589 million and $10 million, respectively.
The transaction is expected to close during the third quarter of 2010, depending on the timing of regulatory approval. During 2010 the transaction will result in a total after-tax charge of approximately $80 million, composed primarily of the impairment of goodwill associated with the business.
Ball's plastics business employs approximately 1,000 people and had sales of $635 million in 2009. Manufacturing plants are located in Ames, Iowa; Batavia, Ill.; Bellevue, Ohio; Chino, Calif.; and Delran, N.J.; and research and development operations are based in Broomfield and Westminster, Colo.
Ball Corporation is a supplier of high-quality metal and plastic packaging for beverage, food and household products customers, and of aerospace and other technologies and services, primarily for the U.S. government. Ball Corporation and its subsidiaries employ more than 14,000 people worldwide and reported 2009 sales of more than $7.3 billion.
