In line with its prior announcement, the manufacturer of metal and plastic packaging, Ball Corporation BLL acquired the outstanding 39.9% minority interest in the Latapack-Ball beverage can business. The buyout will allow Ball Corporation to further leverage, simplify and streamline its business in Brazil, as well as across the broader metal beverage business.
Latapack-Ball, the joint venture, established in 1995, supplies cans and ends to the Brazilian market. On Oct 27, Ball Corporation and its joint venture partners announced that they have reached an agreement to exchange all of their interests in Latapack-Ball.
To acquire Latapack-Ball, Ball Corporation issued approximately 5.7 million shares to the main joint venture partner, Participações Industriais do Nordeste S.A. (PIN). The 38.1% economic interest in Latapack-Ball was worth $17.4 million in cash, which was paid to the smaller joint venture partner, in exchange for its respective interest in the former joint venture.
During the second quarter of 2015, Ball Corporation acquired two of Sonoco Products Co.’s SON metal end and closure facilities in Canton, OH, to broaden its customer product offering of the Metal Food & Household Products Packaging segment. The company continues to invest in next generation steel aerosol manufacturing technology, as well as aluminum aerosol capacity in North America, the United Kingdom and India to drive growth.
Again, Ball Corporation’s pending acquisition of Rexam PLC REXMY for a cash and stock deal valued at $8.4 billion will create the world's largest manufacturer of food and beverage cans. The company expects the deal to result in synergies of $300 million by 2018. The combination is expected to be accretive to earnings per share within the first year of completion.
To meet ongoing customer and European market demand, Ball Corporation announced to expand its impact extruded aerosol can manufacturing plant in Velim, Czech Republic yesterday. Per the development, the company will add a new facility that will begin production during the fourth quarter of 2016.
Ball Corporation is expected to benefit from its continuous focus on cash flow and investments. Product launches and expansion in the emerging markets will also drive growth.
Currently, Ball Corporation has a Zacks Rank #3 (Hold). Albany International Corp. AIN also belongs to the same sector and sports a Zacks Rank #1 (Strong Buy).
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