Ontario Teachers’ Pension Plan Board has reportedly terminated its plans to offload US-based specialty aluminium containers manufacturer Exal.
As part of the sale process, the pension fund manager appointed advisers earlier this year to pursue the divestment for around $1bn. However, the company has reportedly scrapped the plans for now.
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Bidding companies for the acquisition of Exal did not meet the targeted price of the pension fund.
The price is based on earnings before interest, taxes, depreciation and amortisation of around $80m per annum.
Reportedly, the pension fund could also recommence efforts to divest the company.
With substantial operations in South America, Exal manufactures containers for aerosols, beverages and food.
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By GlobalDataLower-than-expected offers are in view of Exal’s weakness in its Argentina operations in recent months.
An investor group led by the Ontario Teachers’ Pension Plan acquired a majority stake in Exal in April 2010, for an undisclosed sum.
Established in 1993, Exal produces approximately 1.3 billion units a year for multiple industry segments, including beverage, pharmaceutical, beauty and personal care, food, and home care. It generates annual revenues of about $400m.
The company was founded by former CEO Delfin Gilbert and its product offerings include impact extruded containers, piston cans, bevloc bottle, coil-to-can, bag-on-valve containers, lining materials, formulation and filling.
