Bemis Company to acquire Alcan division; AmeriSign acquires Bay Shore Graphics
Bemis Company to acquire Alcan division
Neenah-based Bemis Company Inc. announced that it has signed a definitive agreement to acquire the Food Americas operations of Alcan Packaging, a business unit of international mining group Rio Tinto plc for $1.2 billion.
Bemis will acquire 23 Food Americas flexible packaging facilities in the United States, Canada, Mexico, Brazil, Argentina and New Zealand. The facilities produce flexible packaging for the food and beverage industries.
In 2008, Alcan Packaging Food Americas recorded net sales of $1.5 billion and adjusted EBITDA of approximately $166 million. The purchase price represents an adjusted EBITDA multiple of approximately 6.7 times when taking into account the estimated $100 million of tax benefits related to the structuring of much of the transaction as a purchase of assets.
Further adjusting the valuation for estimated annual run-rate synergies of $65 million results in an adjusted EBITDA multiple of approximately 4.8 times. The transaction is expected to close by the end of 2009, subject to customary closing conditions and regulatory review.
"We are very pleased to add Alcan Packaging’s Food Americas business to the Bemis organization," said Henry Theisen, Bemis president and chief executive officer. "Both Bemis and Alcan Packaging have strong, collaborative relationships with renowned food and consumer products customers. We each have a long history of dedication to outstanding quality and manufacturing excellence. In pooling our resources, we will diversify our existing technologies and product lines, which will broaden our product offering and augment our technical capabilities. This acquisition provides value from all angles and is a prudent investment in Bemis’ future."
With the acquisition, Bemis’ pro forma 2008 net sales will increase 40 percent to approximately $5.3 billion. The transaction also will add nearly 4,600 employees to Bemis’ global workforce for a total of over 20,000 employees at 84 manufacturing locations worldwide.
AmeriSign acquires Bay Shore Graphics
AmeriSign & Graphics, a full-service sign, design, digital imaging and offset printing company in Milwaukee, has purchased Bay Shore Graphics Inc. of Glendale.
Bay Shore Graphics’ employees will be retained by AmeriSign, bringing AmeriSign’s staff to nine full-time employees.
"We are pleased to acquire Bay Shore Graphics, which will further our service level to our mutual customers," said Chris Sherman, president of AmeriSign. "From business cards to billboards, we do it all. We’re fortunate that in these difficult economic times, our business model has been successful and allows us to continually grow our customer base."
Scott Worgull, senior account executive with Bay Shore Graphics for 18 years, said that the two companies have collaborated on many projects in the past.
"We know each other and are very compatible working together," Worgull said. "Our joint commitment is to ensure our customers’ printed materials are professionally produced and of the highest quality."