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SAN FRANCISCO - Alcoa Inc said on Friday it agreed to sell its packaging and consumer businesses to New Zealand's Rank Group Limited for US$2.7 billion ($3.6 billion) in cash, the latest move by the world's third-largest aluminum producer to focus on its core business.
Alcoa said its packaging and consumer businesses accounted for about 10 per cent of its 2006 revenue and about 3 per cent of its after-tax operating income.
The assets to be sold have about 10,000 employees in 22 countries and include Reynolds aluminum wrap, among other consumer brand names, the New York-based company said.
Investment bank Lehman Brothers served as financial advisor on the transaction, according to Alcoa, which said in October it had identified buyers for the packaging and consumer businesses.
Alcoa in September sold its stake in Aluminum Corp of China Ltd for about US$2 billion, notching a US$1.8 billion gain on an investment.
The transaction is expected to be completed by the end of the first quarter 2008, the company said.
Privately held Rank Group has large packaging operations, including Carter Holt Harvey, SIG Holding, and Evergreen Packaging, and employs about 17,000.
Shares of Alcoa rose 96 cents, or 2.7 per cent, to close at $36.35 on the New York Stock Exchange.
- REUTERS
