Ball Corporation, which makes cans for Coca-Cola Co and Molson Coors Brewing Co, announced that it has agreed to sell its metal beverage packaging facilities in China to ORG Technology Co.
The group has agreed on a $225 million (€197.7 million) total transaction, including cash plus potential add-ons.
The transaction is subject to customary regulatory approvals and is expected to close during the second half of 2019.
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 in ORG's shares, while agreeing to cooperate on future commercial opportunities.
"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 said that it will use the proceeds from the sale to support its global expansion and multi-year share repurchase programme.
Ball and its subsidiaries employ 17,500 people worldwide and reported 2017 net sales of $11 billion (€9.6 billion).
© 2018 Checkout – your source for the latest Irish retail news. Article by Aidan O’Sullivan. Click subscribe to sign up for the Checkout print edition.