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Ball Corp to offload facilities to Ardagh to push through Rexam takeover

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Ball Corp's proposed acquisition of drinks packaging rival Rexam has moved a step closer today, with the US-based company agreeing the sell-off of several metal beverage can assets to Ardagh Group for US$3.42bn.

Ball Corp hopes to complete its US$6.6bn purchase of Rexam by the end of June

Ball Corp hopes to complete its US$6.6bn purchase of Rexam by the end of June

Ball's $6.6bn move for Rexam, announced in February last year, was granted clearance by the European Commission at the start of this year, conditional on a raft of sell-offs. Subsequently, the company has confirmed today that it will offload the assets, along with several facilities in other markets, to Ardagh.

Included in the transaction are:

  • seven Rexam metal beverage can manufacturing plants and one Rexam end plant in the US
  • eight Ball beverage can manufacturing plants, two Ball end plants and two Rexam beverage can manufacturing plants in Europe
  • two Ball beverage can manufacturing plants in Brazil, and
  • innovation and support functions in Bonn, Germany; Chester, UK; Zurich, Switzerland; Sao Paulo, Brazil; and Chicago and Elk Grove, Illinois, in the US

The sale to Ardagh will proceed only once Ball completes the purchase of Rexam, which it expects to go through by the end of June.

As part of today's announcement, Ball also said it expects the Rexam takeover to result in synergies of "in excess of" $300m by the end of the third year of combined operations. Non-recurring integration costs in the region of $280m are expected by the end of the third year.


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