Ball Corporation Agrees to Sell Chinese Beverage Can and End Manufacturing Facilities
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Assets included in the sale are beverage can and end plants in Beijing, Foshan, Hubei and Qingdao, China, and associated contracts and other related assets. As part of the transaction, Ball also will license its beverage can and end technology to ORG in China, and reinvest approximately $50 million, largely from the anticipated relocation proceeds, in ORG's shares, while agreeing to cooperate on future commercial opportunities with mutual customers by leveraging the expertise of ORG in China and Ball in the markets it serves.
"This arrangement allows each party to leverage its own geographic strengths, while allowing Ball to continue our disciplined approach to capital allocation by freeing up capital that does not generate our required returns," said John A. Hayes, chairman, president and CEO.
Ball will continue to serve the growing demand for sustainable aluminum beverage packaging in other parts of Asia from its wholly owned Myanmar facility and joint ventures located in Vietnam, Thailand, South Korea and Taiwan.
Proceeds from the sale will support Ball's ongoing global growth initiatives and multi-year share repurchase program. Today's announcement will have an immaterial effect on Ball's 2019 goals of $2 billion of comparable EBITDA and free cash flow in excess of $1 billion.
Goldman Sachs & Co. LLC is serving as financial advisor to Ball Corporation, and Skadden, Arps, Slate, Meagher & Flom LLP is serving as Ball Corporation's legal counsel.
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