Bemis Co. buying Alcan Packaging unit for $1.2B - Minneapolis / St. Paul Business Journal:

ejyceh.wordpress.com
billion. Neenah-based Bemis, a manufacturer of flexible packaging and pressure sensitive materialsdfor food, consumer products and other companies, said it is buying the Food Americaxs operations of Alcan from plc, an international mining company. Bemis will acquire 23 Food Americad flexible packaging facilities in theUnited States, Mexico, Brazil, Argentina, and New Zealand. The transaction includes Alcan facilities in Menashaand Boscobel, according to a Bemi spokeswoman. The 23 facilitiex produce flexible packaging for the food and beverage industriee and employabout 4,600 For the year ended Dec. 31, 2008, Chicago-base Alcan Packaging Food Americas recorded net salesof $1.
5 billiom and adjusted earnings before expensesw of approximately $166 million. "Botyh Bemis and Alcan Packaginghave strong, collaborativre relationships with renowned food and consumer products said Henry Theisen, Bemis presidenrt and CEO. "We each have a long history of dedication to outstandingb quality and manufacturing In pooling our we will diversify our existinfg technologies and product linea which will broaden our product offeringh and augment ourtechnical capabilities." The transaction will boost Bemis’ annual net sales 40 percent to approximately $5.
3 billion, with approximatelyy 70 percent, up from 57 percent, of totall Bemis net sales coming from resilienft food packaging. The addition of Alcan'zs employees will increase the company's globakl work force to more than 20,000 employees at 84 manufacturinglocationz worldwide. Bemis expects to achieve more than $65 milliobn in annual cost savings by the end of thesecondf year. Management intends to fund the purchase pricre with a combinationof $1 billion in debt and $200 milliom in equity. and are acting as financial advisers to Bemis forthis transaction, while LLP is acting as primarhy legal adviser to Bemis.
Bemids formerly had its headquarters in ItsBemistape unit, which make tapes and thread used to close packages, is basecd at 2705 University Ave. N.E. in Minneapolis.