ORG Technology to buy Ball’s Chinese packaging facilities for $225m
14 December 2018
Metal packaging firm ORG Technology has agreed to acquire Ball’s metal beverage packaging facilities in China in a deal valued at around $225m.
The deal is comprised of cash and potential additional payments between $50m and $75m for the relocation of an existing facility in the coming years.
Ball is planning to use proceeds from the deal to support its current global growth initiatives and multi-year share repurchase program.
Under the deal, ORG Technology will acquire beverage can and end plants in Beijing, Foshan, Hubei and Qingdao, as well as associated contracts and other related assets.
Furthermore, ORG will also secure license for Ball’s beverage can and end technology in China.
Ball also intends to reinvest around $50m from the relocation proceeds in ORG’s shares to expand commercial opportunities and better serve mutual customers in China and other markets.
Ball will continue to offer aluminum beverage packaging solutions to its customers in other regions of Asia, via its wholly owned Myanmar facility and joint ventures in Vietnam, Thailand, South Korea and Taiwan.
Goldman Sachs has acted as financial advisor to Ball, while Skadden, Arps, Slate, Meagher & Flom as legal counsel to the company.
Source: compelo.com