Ball Corporation has agreed to sell its metal beverage packaging facilities in China to Chinese packaging company ORG Technology for approximately $225 million.
Assets included in the sale are beverage can and end plants in Beijing, Foshan, Hubei and Qingdao, China, as well as associated contracts and other related assets.
Ball also will license its beverage can and end technology to ORG in China as part of the transaction, and will pay approximately $50 million to purchase shares in ORG.
The transaction is subject to regulatory approval, and Ball estimates that the deal is expected to close during the second half of 2019.
Ball says that proceeds from the sale will support the company’s ongoing global growth initiatives, and that the sale will not affect its aluminum beverage packaging activities in other parts of Asia.
A statement from the company claims that Ball has agreed to cooperate on future commercial opportunities with mutual customers “by leveraging the expertise of ORG in China and Ball in the markets it serves.”
John Hayes, chairman, president and CEO said: “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.”
© FoodBev Media Ltd 2020