Alcoa agrees to sell packaging and consumer businesses

Alcoa today announced it has agreed to sell its packaging and consumer businesses to New Zealand’s Rank Group Limited for $2.7 billion in cash. The transaction is expected to be completed by the end of the first quarter 2008.

The divisions include:

• Closure Systems International, plastic and aluminum packaging for beverage, food and personal care customers

• Consumer Products, Reynolds Wrap branded and private label foil

• Flexible Packaging, specialized packaging for pharmaceutical, food & beverage, tobacco and industrial markets

• Reynolds Food Packaging, stock and custom products for the foodservice, supermarket, food processor and agricultural markets

Alcoa says "these packaging businesses have approximately 10,000 employees in 22 countries around the world." The sale is seen as a move by Alcoa to focus on its core business.

According to the press release, Alcoa will continue to operate its flat-rolled aluminum sheet division here in Alcoa, TN. Alcoa's rolled sheet division is a leading provider of aluminum for beverage cans and employs about 1800 workers in the area. Alcoa recently announced a $22 million expansion of its recycling operations here.

(Ed. note: We checked the date of the press release and the source, and this is legit.)