Bemis Company, Inc. (NYSE: BMS) announced today that it has completed its acquisition of the Food Americas operations of Alcan Packaging, a business unit of Rio Tinto plc (LON: RIO; ASX: RIO).
Under the terms of the $1.2 billion transaction, Bemis acquired 23 Food Americas flexible packaging facilities in the U.S., Canada, Mexico, Brazil, Argentina, and New Zealand which recorded 2009 net sales totaling $1.4 billion. These facilities produce flexible packaging principally for the food and beverage industries and will augment Bemis' product offerings and technological capabilities. The transaction is expected to be accretive to both diluted GAAP earnings per share and adjusted earnings per share, beginning in 2010.
Under the terms of an order signed by the U.S. District Court for the District of Columbia on February 25, 2010, two of these facilities, located in Menasha, Wisconsin and Tulsa, Oklahoma, must be divested. The 2009 net sales associated with the facilities to be sold was approximately $100 million.
"We are pleased to welcome our newest Bemis employees and look forward to integrating these new facilities into our business," said Henry Theisen, Bemis President and Chief Executive Officer. "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. This acquisition complements our manufacturing capabilities and technological expertise around the world. We are looking forward to an exciting and successful 2010."