01 JULY 2016www.denverpost.com
Ball Corp. becomes world's largest beverage can maker- finalizes Rexam acquisition
Edited by : AL CIRCLE
2 min read
Ball Corp. on Thursday finalized its $6.1 billion acquisition of British competitor Rexam, making the Broomfield-based company the largest (aluminium and tinplate) beverage can maker in the world.
Ball also assumed $2.4 billion of debt in the deal.
The combined company accounts for 60 percent of beverage can supply in North America, 69 percent in Europe and 74 percent in Brazil, with 75 manufacturing facilities across five continents, 18,700 workers and an estimated $11 billion in net sales for 2015.
“We’re delighted to move forward together as a leader in the packaging industry, supplying approximately 100 billion innovative, high-quality metal (tinplate and aluminium) beverage containers from the world’s most efficient manufacturing footprint,” John A. Hayes, chairman, president and CEO of Ball, said in a statement.
"We will immediately begin integrating the new business into our global metal beverage operations. Through this shared approach, we will drive in excess of $300 million in synergies by the end of the third year of combined operations.”
Rexam’s London headquarters will close by the end of 2016. A spokesperson for Ball said there will be a transfer of some jobs to Broomfield but it is unknown how many.
The acquisition has been in the works since February 2015, requiring approval from three national agencies.
The EU approved the deal in January, subject to the divestment of 12 plants. Brazil OK’d the deal in early June, followed by the Federal Trade Commission just this week, on condition of the sale of eight U.S. plants.
Ball also assumed $2.4 billion of debt in the deal.
The combined company accounts for 60 percent of beverage can supply in North America, 69 percent in Europe and 74 percent in Brazil, with 75 manufacturing facilities across five continents, 18,700 workers and an estimated $11 billion in net sales for 2015.
“We’re delighted to move forward together as a leader in the packaging industry, supplying approximately 100 billion innovative, high-quality metal (tinplate and aluminium) beverage containers from the world’s most efficient manufacturing footprint,” John A. Hayes, chairman, president and CEO of Ball, said in a statement.
"We will immediately begin integrating the new business into our global metal beverage operations. Through this shared approach, we will drive in excess of $300 million in synergies by the end of the third year of combined operations.”
Rexam’s London headquarters will close by the end of 2016. A spokesperson for Ball said there will be a transfer of some jobs to Broomfield but it is unknown how many.
The acquisition has been in the works since February 2015, requiring approval from three national agencies.
The EU approved the deal in January, subject to the divestment of 12 plants. Brazil OK’d the deal in early June, followed by the Federal Trade Commission just this week, on condition of the sale of eight U.S. plants.
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