Alcoa has packaged part of its packaging equipment business and sold it to American Industrial Partners (AIP) for roughly US$45 million.
The sale is part of the aluminum titan’s strategy of focusing on core assets. The cash will be used to pay down debt.
Alcoa’s packaging equipment is used to produce 2-piece cans. The advanced machinery includes decorators, base coaters, embossers and body makers. The technology can print magazine-quality photographs on 2-piece cans, a process coveted by both manufacturers and advertisers.
The packaging equipment business has four facilities in North America, which employ 250 people.
For now, Alcoa will retain its rigid packaging, consumer products, closure systems, food packaging, flexible packaging, protective packaging divisions.
Alcoa produces primary aluminum, fabricated aluminum and alumina. The company has 120,000 employees in 41 countries.
AIP is a private equity firm that has been investing in public and private companies since 1989.
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