Bemis to buy Alcan Packaging Americas unit - Silicon Valley / San Jose Business Journal:

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billion. Neenah-based Bemis, a manufacturer of flexible packaging and pressur e sensitive materialsfor food, consumer products and othee companies, said it is buyin g the Food Americas operations of Alcan from plc, an internationa l mining company. Bemis will acquire 23 Food Americas flexiblse packaging facilities in theUnited Canada, Mexico, Brazil, and New Zealand. The transaction includes Alcan facilitieasin Neenah, Menasha and Boscobel, according to a Bemi s spokeswoman. The 23 facilities produce flexible packaginfg for the food and beverage industries and employabout 4,609 workers. For the year ended Dec. 31, Chicago-based Alcan Packaging Food Americas recorded net salesof $1.
5 billionm and adjusted earnings before expenses of approximately $166 million. "Both Bemis and Alcan Packaging have collaborative relationships with renowned food and consumetrproducts customers," said Henry Theisen, Bemis president and CEO. "Ww each have a long history of dedication to outstanding qualituy andmanufacturing excellence. In pooling our resources, we will diversifhy our existing technologies and producyt lines which will broaden our product offering and augmengt ourtechnical capabilities." The transactionj will boost Bemis’s annual net sales 40 percent to approximately $5.
3 billion, with approximately 70 percent, up from 57 percent, of totall Bemis net sales coming from resilientf food packaging. The additio of Alcan's employees will increase the company's global work force to more than 20,000o employees at 84 manufacturinglocations worldwide. Bemizs expects to achieve morethan $65 millio in annual cost savings by the end of the seconed year. Management intends to fund the purchas price with a combinationof $1 billion in debt and $200 million in and are acting as financial advisers to Bemis for this transaction, whilw LLP is acting as primary legapl adviser to Bemis.