Alcoa Agrees to Acquire Ivex Packaging Corporation; Move Broadens Alcoa's Position in the Food Service and Consumer Packaging Industry.Business Editors PITTSBURGH--(BUSINESS WIRE)--March 18, 2002 Alcoa Inc. (NYSE NYSE See: New York Stock Exchange :AA) announced today that it has entered into an agreement to acquire Chicago-based Ivex Packaging Corporation (NYSE:IXX) in which the shareholders of Ivex will receive $21.50 per share in cash. The total enterprise value of the acquisition, including the assumption of debt, is approximately $790 million. The acquisition will exclude Ivex's 48.2% interest in the common stock of Packaging Dynamics Corporation, which will be distributed to Ivex's shareholders. Ivex is a leading manufacturer of specialty plastic packaging for the food, electronic, medical, and retail markets with revenues totaling $643 million in 2001. Ivex has approximately 3,700 employees primarily in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , as well as Europe and Southeast Asia Southeast Asia, region of Asia (1990 est. pop. 442,500,000), c.1,740,000 sq mi (4,506,600 sq km), bounded roughly by the Indian subcontinent on the west, China on the north, and the Pacific Ocean on the east. . It will become part of Alcoa's global packaging and consumer business. "The addition of Ivex will broaden Alcoa's position in the food packaging and foodservice packaging markets, where we already have a strong presence," said Alcoa Chairman Alain Belda. "This acquisition is consistent with our previously articulated strategy to profitably grow our packaging and consumer business." Alcoa expects the transaction to be accretive to earnings within the first year and estimates the potential for annual synergies to be $75 to $100 million within three years. Alcoa's global packaging and consumer segment had $2.7 billion in revenues and an after-tax operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $185 million in 2001. The transaction is subject to the approval of Ivex shareholders and customary regulatory approvals. The parties expect the transaction to be completed during the second quarter of 2002. Alcoa is the world's leading producer of primary aluminum, fabricated fab·ri·cate tr.v. fab·ri·cat·ed, fab·ri·cat·ing, fab·ri·cates 1. To make; create. 2. To construct by combining or assembling diverse, typically standardized parts: aluminum and alumina alumina (əl  `mĭnə) or aluminum oxide, Al2O3, chemical compound with m.p. about 2,000°C; and sp. gr. about 4.0. and is active in all major aspects of
the industry -- mining, refining, smelting smelting, in metallurgy, any process of melting or fusion, especially to extract a metal from its ore. Smelting processes vary in detail depending on the nature of the ore and the metal involved, but they are typified in the use of the blast furnace. , fabricating and recycling.
Alcoa's aluminum products and components are used worldwide in many
products, including aircraft and automobiles, and a wide variety of
consumer and industrial applications, including such Alcoa brands as
Reynolds Wrap(R) aluminum foil Noun 1. aluminum foil - foil made of aluminumaluminium foil, tin foil foil - a piece of thin and flexible sheet metal; "the photographic film was wrapped in foil" and Baco(R) household wraps. Alcoa has 129,000 employees in 38 countries. Certain statements in this release relate to future events and expectations and as such constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. involving known and unknown risks and uncertainties that may cause actual results, performance or achievements related to this transaction to be different from those expressed or implied in the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include Alcoa's inability to achieve the level of synergies anticipated by management, including possible increases in the cost of doing business resulting from war or terrorist activities, and other risk factors summarized in Alcoa's SEC reports. Alcoa Inc. (NYSE:AA) Ivex Packaging Corp. (NYSE:IXX) |
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