Saturday December 22, 12:11 AM
Alcoa sells packaging, consumer business to N. Zealand firm
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NEW YORK (AFP) - US aluminum giant Alcoa (NYSE: AA - news) announced Friday it has agreed to sell its packaging and consumer operations to New Zealand's Rank Group Limited for 2.7 billion dollars in cash.
"The transaction is expected to be completed by the end of the first quarter 2008," Alcoa said in a statement.
Alcoa's packaging and consumer businesses represented about 10 percent of its revenues last year, raked in about 3.2 billion dollars, the company said. It also generated 95 million dollars in after-tax operating income.
The businesses being sold include Consumer Products, a manufacturer of the Reynolds Wrap aluminum and plastic foil brand.
The sale also includes Closure Systems International, which manufactures plastic and aluminum packaging closures and capping equipment for foods, drinks and personal care products.
Alcoa is also selling Flexible Packaging, which manufactures packaging materials for the pharmaceutical, food and beverage, tobacco and industrial markets; and Reynolds Food Packaging, makers of stock and custom products for supermarkets, and the food service, food processor and agricultural industries.
The packaging businesses being ceded by Alcoa to Rank Group (LSE: GB00B1L5QH97.L - news) , an investment firm controlled by New Zealand billionaire Graeme Hart, employ about 10,000 people in 22 countries.
Alcoa had said in October that, following a "strategic review," it was preparing to sell its packaging and consumer operations as part of a wide-ranging reorganization.
The US metals giant said then that it had "received strong indications from strategic buyers" for the packaging and consumer businesses.
The October announcement came weeks after Alcoa announced it was selling its stake in Aluminum Corporation of China Limited (Chalco).
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