(Neenah, Wisconsin) - Bemis Company Inc. (NYSE:BMS) says it has signed a definitive agreement to acquire the Food Americas operations of Alcan Packaging, a business unit of international mining group Rio Tinto plc (LON: RIO) (ASX: RIO), for $1.2 billion.
As part of the contract, Bemis will acquire 23 Food Americas flexible packaging facilities in the U.S., Canada, Mexico, Brazil, Argentina, and New Zealand. These facilities produce flexible packaging for the food and beverage industries.
“Both Bemis and Alcan Packaging have strong, collaborative relationships with renowned food and consumer products customers,” said Henry Theisen, Bemis president and chief executive. “In pooling our resources, we will diversify our existing technologies and product lines which will broaden our product offering and augment our technical capabilities.”
The deal adds nearly 4,600 employees to Bemis' global workforce for a total of more than 20,000 employees at 84 manufacturing locations worldwide. Bemis expects more than $65 million of annual savings by the end of the second year following the acquisition date. Of this total improvement, nearly 50 percent is expected to be achieved within 12 months of completing the transaction. These improvements will be achieved primarily by optimizing product mix, improving operational and supply chain efficiencies, and reducing duplicate administrative costs.
Based in Neenah, Wisconsin, Bemis Company is a supplier of flexible packaging and pressure sensitive materials used by food, consumer products, manufacturing, and other companies worldwide. Founded in 1858, the Company reported 2008 net sales of $3.8 billion. For more information visit http://www.bemis.com/
Alcan Packaging, a business unit of international mining group Rio Tinto plc, is a supplier of specialty packaging for the food, pharmaceutical, beauty and tobacco industries. Based in Paris, France, Alcan Packaging is comprised of 129 facilities and 29,000 employees in 31 countries. Alcan Packaging's Food Americas division is based in Chicago, Illinois and operates 23 facilities in North America, South America, and New Zealand with 4,600 employees. For more information about the company visit www.alcanpackaging.com
For a complete version of the BUSINESS WIRE press release:
http://www.businesswire.com/news/home/20090705005050/en
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