BROOMFIELD, Colo., Oct. 27, 2015 /PRNewswire/ -- Ball Corporation (NYSE: BLL) today announced that it has reached an agreement with its joint venture partners in Brazil to acquire their remaining 39.9 percent minority interest in the Latapack-Ball beverage can business in exchange for the issuance of 6 million Ball common shares.
The joint venture, established in 1995, supplies cans and ends to the Brazilian market from four manufacturing facilities. The local business has grown over the years as local customers' packaging mix continues to shift to metal beverage cans.
"Latapack-Ball is one of the most successful joint ventures in our company's history, and this exchange allows us to further leverage, simplify and streamline our business and business decision-making in Brazil, as well as across the broader Ball metal beverage business," said John A. Hayes, chairman, president and CEO. "By contributing their interest into a larger, global opportunity, our partners in Brazil will continue to participate in our future value creation as we better serve our dynamic customer base through increased supply chain efficiencies and optimization of Ball best practices to ensure that beverage cans are economically viable for years to come."
The transaction is subject to customary approvals and is expected to close no later than the first quarter of 2016. Ball looks forward to working directly and efficiently with Brazil's Tribunal of Administrative Council for Economic Defense to address any remaining competition concerns regarding Ball's proposed offer for Rexam PLC.
About Ball Corporation
Ball Corporation supplies innovative, sustainable packaging solutions for beverage, food and household products customers, as well as aerospace and other technologies and services primarily for the U.S. government. Ball Corporation and its subsidiaries employ 14,500 people worldwide and reported 2014 sales of $8.6 billion. For more information, visit www.ball.com, or connect with us on Facebook or Twitter.
This release contains "forward-looking" statements concerning future events and financial performance. Words such as "expects," "anticipates," "estimates" and similar expressions identify forward-looking statements. Such statements are subject to risks and uncertainties, which could cause actual results to differ materially from those expressed or implied. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Key risks and uncertainties are summarized in filings with the Securities and Exchange Commission, including Exhibit 99 in our Form 10-K, which are available on our website and at www.sec.gov. Factors that might affect: a) our packaging segments include product demand fluctuations; availability/cost of raw materials; competitive packaging, pricing and substitution; changes in climate and weather; crop yields; competitive activity; failure to achieve productivity improvements or cost reductions; mandatory deposit or other restrictive packaging laws; customer and supplier consolidation, power and supply chain influence; changes in major customer or supplier contracts or loss of a major customer or supplier; political instability and sanctions; and changes in foreign exchange or tax rates; b) our aerospace segment include funding, authorization, availability and returns of government and commercial contracts; and delays, extensions and technical uncertainties affecting segment contracts; c) the company as a whole include those listed plus: changes in senior management; regulatory action or issues including tax, environmental, health and workplace safety, including U.S. FDA and other actions or public concerns affecting products filled in our containers, or chemicals or substances used in raw materials or in the manufacturing process; technological developments and innovations; litigation; strikes; labor cost changes; rates of return on assets of the company's defined benefit retirement plans; pension changes; uncertainties surrounding the U.S. government budget, sequestration and debt limit; reduced cash flow; ability to achieve cost-out initiatives; interest rates affecting our debt; and successful or unsuccessful acquisitions and divestitures, including, with respect to the proposed Rexam PLC acquisition or the proposed Latapack-Ball acquisition, the effect of the announcement of the acquisition on our business relationships, operating results and business generally; the occurrence of any event or other circumstances that could give rise to the termination of our definitive agreement with Rexam PLC in respect of the acquisition or the definitive agreements in respect of the Latapack-Ball acquisition; the outcome of any legal proceedings that may be instituted against us; and the failure to satisfy conditions to completion of the acquisition of Rexam PLC or the remaining interests in Latapack-Ball, including the receipt of all required regulatory approvals.
SOURCE Ball Corporation