Bemis Co. Inc. of Neenah, Wis., has completed its $1.2 billion acquisition of the Food Americas operations of Alcan Packaging, a business unit of London-based mining group Rio Tinto plc, and will divest meat and cheese packaging plants in Menasha, Wis., and Tulsa, Okla., the company said March 1.
This is going to be a year of transition and integration for our newly acquired operations, Henry Theisen, president and CEO of Bemis, said in a news release.
Our attention is focused on maintaining the positive momentum of our current Bemis business while seamlessly integrating and supporting our new facilities.
Bemis in February received approval from the U.S. District Court for the District of Columbia for the deal, conditional on Bemis divesting certain Food Americas packaging assets. According to Bemis, the two plants being divested represent about $100 million in annual sales.
Alcan's Food Americas operations reported 2009 sales of about $1.4 billion. The unit operated 23 plants in the United States, Canada, Mexico, Brazil, Argentina and New Zealand.
Bemis sought to buy the Food Americas business in 2009, but the deal was held up when the Department of Justice expressed concern about the impact of the deal on competition under U.S. antitrust regulations.
Bemis is a major supplier of flexible packaging and pressure-sensitive materials used in food, consumer and health-care products, as well as in other markets. The company reported 2009 net sales of $3.5 billion. With the Food Americas buy completed, Bemis employs 20,000 in 84 manufacturing facilities in 13 countries.
Bemis also released earnings guidance March 1, adjusted for the impact of the Alcan acquisition. Bemis expects full-year 2010 adjusted diluted earnings to be in the range of $1.95 to $2.10 per share.
During the next two years, we expect to generate strong cash flow which we will use to invest in growth opportunities, pay down debt, and deliver attractive total returns to our shareholders, Theisen said.
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