14 December 2018 | News
As part of the transaction, Ball also will license its beverage can and end technology to ORG in China.
Ball Corporation has announced an agreement to sell its metal beverage packaging facilities in China to ORG Technology Co. Ltd., a leading Chinese metal packaging company, for approximately $225 million total transaction consideration including cash, plus potential additional consideration related to the relocation of an existing facility over the next several years, which the company currently expects to be in the range of $50 million to $75 million. 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, largely from the anticipated relocation proceeds, in ORG's shares, while agreeing to cooperate on future commercial opportunities with mutual customers by leveraging the expertise of ORG in China and Ball in the markets it serves.
Ball will continue to serve the growing demand for sustainable aluminum beverage packaging in other parts of Asia from its wholly owned Myanmar facility and joint ventures located in Vietnam, Thailand, South Korea and Taiwan.