Aluminium giant Alcoa (Pittsburgh, Pennsylvania / USA; www.alcoa.com) is to sell its packaging and consumer businesses to New Zealand-based private investment company Rank Group (Auckland) for USD 2.7 bn in cash. The transaction is expected to be completed by the end of the first quarter 2008. Alcoa’s packaging and consumer businesses generated approximately USD 3.2 bn in revenues and USD 95m in post-tax operating profits in 2006, representing around 10% of Alcoa 2006 revenues and only 3% of post tax operating profits.

Alcoa announced in April 2007 its plan to explore strategic alternatives for this segment – see Plasteurope.com of 04.05.2007. In May, Rank acquired Swiss packaging manufacturer SIG Holding (Neuhausen / Switzerland; www.sig.biz) see Plasteurope.com of 21.05.2007

Businesses included in the Alcoa sale are: Closure Systems International, manufacturer of plastic and aluminium packaging closures and capping equipment; Consumer Products, producer of Reynolds Wrap branded and private label foil, wraps and bags; Flexible Packaging, which manufactures laminated, printed, and extruded non-rigid packaging materials; and Reynolds Food Packaging, maker of stock and custom products for the foodservice, supermarket, food processor and agricultural markets.

In total, the businesses employ around 10,000 people in 22 countries around the world. Alcoa says that it will continue to operate its flat-rolled can sheet products serving the packaging market.