Ball to Acquire Four Beverage Packaging Plants From AB InBev
July 01 2009 - 5:30AM
PR Newswire (US)
BROOMFIELD, Colo., July 1 /PRNewswire-FirstCall/ -- Ball
Corporation (NYSE:BLL) announced today that it has signed a
definitive agreement with Anheuser-Busch InBev (AB InBev) to
acquire certain of AB InBev's beverage can manufacturing assets.
Ball will acquire four of AB InBev's plants in the U.S. for $577
million. The facilities being acquired are beverage can
manufacturing plants in Rome, Ga.; Columbus, Ohio; and Ft.
Atkinson, Wis., and a beverage can end manufacturing plant in
Gainesville, Fla. In the first full year of operation, Ball expects
the plants to generate revenue and EBITDA of approximately $680
million and $94 million, respectively. The plants produce annually
about 10 billion aluminum cans and 10 billion easy-open can ends.
More than two-thirds of the cans are produced for leading soft
drink companies and the rest for AB InBev. The facilities employ
approximately 635 people. The transaction is expected to close at
the end of the year or early in the first quarter of 2010, subject
to regulatory approval, and be accretive to Ball's earnings and
cash flow in 2010. "This acquisition fits well with our strategy to
grow our worldwide beverage can business," said R. David Hoover,
chairman, president and chief executive officer of Ball
Corporation. "These are well-maintained, high-volume manufacturing
assets that are run by very skilled, experienced can and end
makers. We will vigorously pursue what we see as significant
opportunities to share best practices, realize synergies and
improve overall performance." Goldman, Sachs & Co. and J.P.
Morgan Securities Inc. are acting as financial advisors to Ball on
this transaction. Skadden, Arps, Slate, Meagher & Flom LLP and
Axinn, Veltrop & Harkrider LLP are acting as legal counsel.
Ball Corporation is a supplier of high-quality metal and plastic
packaging for beverage, food and household products customers, and
of aerospace and other technologies and services, primarily for the
U.S. government. Ball Corporation and its subsidiaries employ more
than 14,000 people worldwide and reported 2008 sales of
approximately $7.6 billion. For the latest Ball news and for other
company information, please visit http://www.ball.com/. Earnings
Conference Call Details Ball Corporation will report the company's
second quarter 2009 earnings on Thursday, July 23, 2009, before
trading begins on the New York Stock Exchange. At 9 a.m. Mountain
Time on that day (11 a.m. Eastern), Ball will hold its regular
quarterly conference call about the company's results and
performance and this transaction. The North American toll-free
number for the call is 800-732-5617. International callers should
dial 212-231-2900. Please use the following URL for a Web cast of
the live call:
http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=115234&eve
ntID=2286370. For those unable to listen to the live call, a taped
replay will be available after the call's conclusion until 1 p.m.
Eastern Time on July 30, 2009. To access the replay, call
800-633-8284 (North American callers) or 402-977-9140
(international callers) and use reservation number 21429825. A
written transcript of the call will be posted within 48 hours of
the call's conclusion to Ball's Web site at http://www.ball.com/ in
the investors section under "presentations." Forward-Looking
Statements This release contains "forward-looking" statements
concerning future events and financial performance. Words such as
"expects," "anticipates," "estimates" and similar expressions are
intended to identify forward-looking statements. Such statements
are subject to risks and uncertainties which could cause actual
results to differ materially from those expressed or implied. The
company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. Key risks and uncertainties are
summarized in filings with the Securities and Exchange Commission,
including Exhibit 99.2 in our Form 10-K, which are available at our
Web site and at http://www.sec.gov/. Factors that might affect our
packaging segments include fluctuation in product demand and
preferences; availability and cost of raw materials; competitive
packaging availability, pricing and substitution; changes in
climate and weather; crop yields; competitive activity; failure to
achieve anticipated productivity improvements or production cost
reductions, including our beverage can end project; mandatory
deposit or other restrictive packaging laws; changes in major
customer or supplier contracts or loss of a major customer or
supplier; and changes in foreign exchange rates, tax rates and
activities of foreign subsidiaries. Factors that might affect our
aerospace segment include: funding, authorization, availability and
returns of government and commercial contracts; and delays,
extensions and technical uncertainties affecting segment contracts.
Factors that might affect the company as a whole include those
listed plus: accounting changes; changes in senior management; the
current global credit squeeze and its effects on liquidity, credit
risk, asset values and the economy; successful or unsuccessful
acquisitions, joint ventures or divestitures; integration of
recently acquired businesses; regulatory action or laws including
tax, environmental, health and workplace safety, including in
respect of chemicals or substances used in raw materials or in the
manufacturing process; governmental investigations; technological
developments and innovations; goodwill impairment; antitrust,
patent and other litigation; strikes; labor cost changes; rates of
return projected and earned on assets of the company's defined
benefit retirement plans; pension changes; reduced cash flow;
interest rates affecting our debt; and changes to unaudited results
due to statutory audits or other effects. DATASOURCE: Ball
Corporation CONTACT: investors, Ann T. Scott, +1-303-460-3537, , or
media, Scott McCarty, +1-303-460-2103, , both of Ball Corporation
Web Site: http://www.ball.com/
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