Alcoa to sell packaging and consumer businesses to New Zealand's Rank Group

24 December 2007

Alcoa today announced it has agreed to sell its packaging and consumer businesses to New Zealand's Rank Group Limited for $2.7 billion in cash. The transaction is expected to be completed by the end of the first quarter 2008.

Ever since it lost the bid for Alcan, Alcoa has been divesting its assts. Earlier in August Alcoa had announced that it would sell its two remaining US soft-alloy extrusion facilities in Warren, Ohio and Plant City, Florida to Golden Aluminum for an undisclosed amount. These plants extrude aluminium into products used in the building and construction and commercial transportation markets.

The aluminium major had also announced that it would close its Tifton, Georgia soft-alloy extrusion facility by the end of October, 2007. The company was not able to secure a suitable buyer for the plant, which employs approximately 200 people.

Alcoa's packaging and consumer businesses, proposed to be divested to the New Zealand company, generated approximately $3.2 billion in revenues and $95 million in after-tax operating income in 2006, representing approximately 10 percent of Alcoa 2006 revenues and approximately 3 per cent of after-tax operating income. Alcoa announced in April 2007 its plan to explore strategic alternatives for this segment. Businesses included in the sale are:

Closure Systems International, a global leader in the manufacture of plastic and aluminum packaging closures and capping equipment for beverage, food and personal care customers;

Consumer Products, a leading manufacturer of Reynolds Wrap branded and private label foil, wraps and bags;