UPDATE: Ball To Acquire European Aerosol Can Company

Ball Corp. (BLL) has agreed to buy European aluminum aerosol container maker Aerocan SAS from Barclays PLC's (BCS, BARC.LN) private-equity group for about 221 million euros ($293 million), broadening Ball's metal packaging product line.

Aerocan is the largest supplier of aluminum aerosol cans and bottles in Europe. The company also provides aluminum slugs, giving Ball additional access to the feedstock for making cans. The deal improves Ball's exposure to the European can market at a time when the company is working to grow its international sales. About 32% of the Colorado company's operations are outside North America.

The acquisition also supports Ball's goal of consolidating the metal packaging industry, Ghansham Panjabi, a packaging industry analyst for Robert W. Baird & Co., said.

"The acquisition is consistent with our thesis that Ball will move aggressively to deploy its free cash toward acquisitions," said Panjabi, in a note Wednesday to investors.

The deal is expected to close early next year. Ball has benefited from rebounding demand for packaging. Its third-quarter profit more than doubled as revenue climbed more than expected and one-time gains helped the bottom line.

Ball shares were down around 1.1% at $67.23 a share in recent trading. Ball's stock is up 30% this year.

-Bob Tita, Dow Jones Newswires; 312-750-4129; robert.tita@dowjones.com

-Matt Jarzemsky contributed to this article.

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