Ball Corp To Buy Tubex Facility, Expand In Aluminum Packaging
Zacks Investment Research | Mar 11, 2020 10:12PM ET
Ball Corporation (NYSE:BLL) has entered into an agreement to acquire an aluminum aerosol packaging business, Tubex Industria E Comercio de Embalagens Ltda, for $80 million. Notably, the buyout includes the purchase of a plant near Sao Paolo, Brazil.
The Sao Paolo-based plant’s eight extruded aluminum aerosol can lines produce personal care packaging for local and global customers. The plant has around 300 employees.
With the increasing preference for sustainable aluminum packaging options among global customers, this strategic investment allows the company to extend its geographic reach, while serving the market as one of the leading aluminum aerosol suppliers in Brazil.
Following the buyout, the plant will be part of Ball Corporation’s aluminum aerosol packaging division. Moreover, the latest acquisition supports the company’s global aluminum aerosol and slug business in Europe, North America and Asia.
Global beverage-can demand continues to shoot up as consumers now prefer cans over glass and plastic. The company remains well positioned to capitalize on this demand by investing in capacity expansion and new products. It continues to focus on initiatives to achieve better value for standard products and higher growth for specialty products.
Ball Corporation has been primarily investing in aluminum packaging production to cater to the rising demand for aluminum cans, bottles and cups. Further, improving operational efficiencies, sustainability benefits, ramping up production in the previously-announced line additions and greenfield-plant expansions are likely to add at least 8 billion units of capacity by the end of 2021.
Additionally, Ball Corporation launched lightweight aluminum cups in response to the increasing demand for sustainable products. It has announced plans to construct two specialty beverage-can manufacturing facilities in Glendale, AZ, and the Northeast U.S. to support the new can-filling facility for customers.
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Ball Corporation's shares have gained 22.1% over the past year compared with the Zacks Investment Research
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