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Alcoa completes $2.7 billion sale of packaging business to New Zealand firm

Alcoa completes $2.7 billion sale of packaging business to New Zealand firm

Alcoa Inc. on Friday said it completed the sale of its packaging and consumer businesses to New Zealand-based Rank Group Ltd. for $2.7 billion (euro1.78 billion) in cash.
The deal was announced in December, driven by relatively low profits from the segment, the aluminum company said. The packaging and consumer businesses generated 11 percent of Alcoa's 2007 revenues, but just 4.6 percent of its after-tax operating income.
Alcoa has received $2.5 billion (euro1.65 billion) from Rank and expects to receive $200 million (euro131.87 million) more in April once regulatory approvals and other conditions are met for a small number of facilities.
Alcoa expects to use the cash for the company's core business, including new smelters like the one completed in Iceland late last year.
The businesses sold include Alcoa's closure systems, flexible packaging and consumer products, including Reynolds Wrap.
The businesses have a combined 9,300 employees in 22 countries.
Alcoa will continue to operate its flat-rolled can sheet products that also serve the packaging industry.
Shares of Alcoa fell 67 cents to $38.45 Friday.


Updated : 2021-04-22 06:55 GMT+08:00