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Ball Acquires Extruded Aluminum Packaging Business in Mexico

November 6, 2012


• Ball Corporation has entered into agreements to acquire Envases del Plata S.A. de C.V., a leading extruded aluminum aerosol packaging producer with a manufacturing facility in San Luis Potosi, Mexico, and to form a new joint venture in Argentina that will combine Ball’s and Envases del Plata Group’s aerosol packaging operations in Argentina and in Brazil. The acquisition was expected to close last month.

“These actions are consistent with our Drive for 10 strategy to broaden Ball’s geographic reach and expand into new products and capabilities,” said John A. Hayes, Ball’s president and chief executive officer. “The acquisition in Mexico will provide a platform to grow our North American extruded aluminum packaging business, and in Argentina the new joint venture will leverage the combined strengths of Ball’s steel aerosol can business in Argentina with Envases’ extruded aluminum aerosol business in Argentina and Brazil.”

The San Luis Potosi plant produces extruded aluminum aerosol cans for personal care and household products to customers in North, Central and South America. It employs approximately 150 people and operates five manufacturing lines.

The plant will become part of Ball’s Food & Household Products Packaging Division, Americas, and will complement Ball’s existing aluminum aerosol business in Europe, Ball Aerocan, and the North American extruded aluminum aerosol slug business that Ball acquired in 2010.

Ball is the largest supplier of extruded aluminum slugs in the world, and this acquisition provides a new end market for Ball’s products including the company’s ReAl technology that enables the use of recycled material and meaningful lightweighting in the manufacture of extruded aluminum packaging.
The new Argentine joint venture, called Envases-Ball, will include Ball’s steel aerosol can plants in Buenos Aires and San Luis, Argentina, and Envases’ extruded aluminum packaging plants in the same locations and in Manaus, Brazil. Envases will own 75% of the joint venture, and Ball will own the remainder. Ball will provide technical and other assistance to the business and under the terms of the agreement can elect to acquire or exit the joint venture in the future.

More info: www.ball.com
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