US: A-B Inbev sells beverage can plants to Ball

1 July 2009 | Source: just-drinks.com editorial team

Anheuser-Busch InBev has agreed to sell four beverage can plants to Ball Corporation, the global packaging giant, for US$577m in cash.

A-B InBev said today (01 July) that the metal beverage can and lid production plants are part of the brewer's US subsidiary, Metal Container Corporation (MCC).

The agreement takes A-B InBev a step nearer to its stated aim of using disposals to pay off the bulk of a US$7bn bridge loan taken out to finance InBev's $52bn takeover of A-B last year.

As part of the transaction, Ball Corporation will enter into a long-term supply agreement to continue to supply A-B InBev with metal beverage cans and lids from the divested plants.

Ball has also agreed to offer employment to each active employee of the plants, A-B InBev said.

Production at the four plans is geared towards packaging for soft drinks, the brewer said.

There are no plans to sell MCC's seven remaining plants, which are more geared towards beer can production, it added.

A-B InBev CEO Carlos Brito said: "The sale of this group of soft drinks-focused plants represents another step in our de-leveraging programme, allowing us to rationalise capital while retaining those facilities that remain most relevant to our beer business."

Earlier today, A-B InBev said that it would set up an ADR programme in the US.