Ball to sell metal beverage packaging plants in China for $225m
Ball has signed an agreement with Chinese metal packaging company ORG Technology to sell its metal beverage packaging facilities in the country for a total consideration of $225m.
Ball has signed an agreement with Chinese metal packaging company ORG Technology to sell its metal beverage packaging facilities in the country for a total consideration of $225m.
The deal value includes cash and a potential additional consideration of $50m-$75m to relocate an existing facility over the next several years.
Assets covered under the agreement include beverage can and end plants in Beijing, Foshan, Hubei and Qingdao, China, along with associated contracts and other related assets.
Ball will license its beverage can and end technology in the country to ORG.
The company will reinvest around $50m in ORG’s shares and will agree to cooperate on future commercial opportunities.
Ball president and CEO chairman John A Hayes said: “This arrangement allows each party to leverage its own geographic strengths, while allowing Ball to continue our disciplined approach to capital allocation by freeing up capital that does not generate our required returns.”
“This arrangement allows each party to leverage its own geographic strengths.”
The metal packaging firm will use investment received from the sale to support its global growth initiatives and multi-year share repurchase programme.
Ball will continue to offer sustainable aluminium beverage packaging to other Asian markets using its Myanmar facility and joint ventures in Vietnam, Thailand, South Korea, and Taiwan.
In October, the beverage can maker announced plans to cease production at its beverage packaging plant in San Martino, Italy, by the end of December.