Exal Corporation Signs Agreement to Sell European Division to Ardagh Group
The proposed sale includes two aluminum container-manufacturing plants in France and the Netherlands; Exal’s share in a slug making joint venture with Ball Aerocan in France; and Boxal Hungary (previously SzennaPack) upon completion of this acquisition.
Jan 4 2012 --- Exal Corporation, the world’s largest producer of extruded aluminum containers, has announced it has signed a Sale and Purchase Agreement to sell its European Division to Ardagh Group in a transaction involving a total consideration of approximately EUR85 million. The sale is contingent upon a number of conditions including anti-trust approval and is expected to be finalized in the first half of 2012.
Exal has operated in Europe since 2004, when it acquired the assets of Boxal Group, then part of Alcan Packaging. The proposed sale includes two aluminum container-manufacturing plants in France and the Netherlands; Exal’s share in a slug making joint venture with Ball Aerocan in France; and Boxal Hungary (previously SzennaPack) upon completion of this acquisition. Exal will retain its aluminum slug-making operation in Switzerland.
Commenting on the agreement, Exal CEO Michael Hoffman said, “Boxal has a proud heritage, having operated in Europe since 1948. While the decision to pursue this unsolicited offer was difficult, we are confident that if the transfer of ownership occurs, Ardagh Group’s excellent reputation and strong capabilities will enable a smooth transition that will be beneficial to all.”
The proposed sale of its Europe Division will enable Exal to expand its presence in Latin America and pursue growth in other regions. Exal has been in Latin America since 1996, and currently operates two world-class facilities near Buenos Aires with aluminum aerosol can manufacturing and filling capability. These two operations give Exal a leadership position in the region and a solid base from which to expand in Argentina, Brazil and other emerging Latin American markets.
