LOS ANGELES and WESTMINSTER, Colo., Dec. 20, 2021 /PRNewswire/ -- Platinum
Equity and Ball Corporation (NYSE:BLL) today announced the signing
of a definitive agreement to sell Ball Metalpack to Sonoco (NYSE:
SON) in a transaction valued at approximately $1.35 billion. Closing of the transaction is
subject to satisfaction of customary closing conditions, including
regulatory review, and is expected to be completed in the first
quarter of 2022.
Ball Metalpack, based in Broomfield,
Colorado, manufactures sustainable steel containers for
aerosol products, food, household consumables, pet food,
nutritional and other products in the
United States. It was formed as a joint venture between
Platinum Equity and Ball Corporation in 2018. Platinum Equity owns
51 percent of the business and Ball Corporation owns 49
percent.
"We have known the Platinum team for a decade, going back to
their investment in BWAY. Over the years, it has become clear to us
at Ball that Platinum is a differentiated private equity firm with
a tremendous operational capability and high standards of
integrity," said John A. Hayes,
chairman and CEO of Ball. "Platinum is a trusted partner – the
firm's carve out expertise, operational capabilities and relentless
approach to execution proved to be a powerful combination, and the
impact we have been able to achieve together speaks for itself. The
expected proceeds from the sale of our stake in the Ball Metalpack
joint venture, combined with the upfront cash received in 2018,
create an excellent outcome for Ball shareholders, further
enhancing Ball's ability to return value to shareholders via share
buybacks and dividends, and to make EVA enhancing investments."
The sale is the culmination of a comprehensive three-year
transformation program through which Platinum Equity and Ball
established Ball Metalpack as a standalone enterprise, then drove a
broad range of operational improvements throughout the business.
Priorities for the transformation program included footprint
optimization, new product development, expansion of the company's
capabilities, and investments in growth and operational excellence.
Ball Metalpack has invested approximately $100 million in state-of-the-art manufacturing
infrastructure since 2018.
"Three years ago John Hayes came
to us with a clear-eyed vision for what Ball Metalpack could
accomplish by creating a structure that would bring us together as
partners and deploy the full Platinum toolkit to create value,"
said Platinum Equity Partner Louis Samson. "We quickly mapped out a
plan, negotiated a deal that aligned our interests, and then our
teams went to work. I'm proud that by joining forces we were able
to deliver on behalf of the company and its shareholders."
Mr. Samson noted that Platinum Equity has a lot of experience
creating similar transaction structures with large corporations
when they are seeking to divest assets.
"We find that corporate sellers can benefit from a structure
that allows for a partial sale at the outset of their divestment
process, with the opportunity to deliver incremental value by
participating in the upside we can create together," said Mr.
Samson. "This investment is another successful story of aligning
our interests with those of one of the world's leading corporations
and delivering value for both of us."
Ball joins Caterpillar (Neovia Logistics), Emerson (Artesyn
Technologies and Vertiv), and Telstra (Sensis) on the list of
companies that have participated in equity upside along with
Platinum Equity.
"Ball Metalpack is delivering strong performance, serves
attractive end markets, and provides sustainable packaging
solutions that are in increasingly high demand," said Platinum
Equity Managing Director Delara
Zarrabi. "We appreciate all the hard work Jim Peterson and the entire team at Ball
Metalpack have done to put the company in a position to join a
world class organization like Sonoco."
Goldman Sachs is serving as financial advisor to Ball Metalpack
on the sale to Sonoco. Latham & Watkins LLP is serving as
Platinum Equity's legal counsel on the transaction. Skadden, Arps,
Slate, Meagher & Flom LLP is serving as legal counsel to Ball
Corporation.
About Platinum Equity
Founded in 1995 by Tom Gores,
Platinum Equity is a global investment firm with more than
$25 billion of assets under
management and a portfolio of approximately 50 operating companies
that serve customers around the world. The firm is currently
investing from Platinum Equity Capital Partners V, a
$10 billion global buyout fund,
and Platinum Equity Small Cap Fund, a $1.5 billion buyout fund focused on investment
opportunities in the lower middle market. Platinum Equity
specializes in mergers, acquisitions and operations – a trademarked
strategy it calls M&A&O® – acquiring and
operating companies in a broad range of business markets, including
manufacturing, distribution, transportation and logistics,
equipment rental, metals services, media and entertainment,
technology, telecommunications and other industries. Over the past
25 years Platinum Equity has completed more than 300
acquisitions.
About Ball Corporation
Ball Corporation supplies innovative, sustainable aluminum
packaging solutions for beverage, personal care and household
products customers, as well as aerospace and other technologies and
services primarily for the U.S. government. Ball Corporation and
its subsidiaries employ 21,500 people worldwide and reported 2020
net sales of $11.8 billion. For more information,
visit www.ball.com, or connect with us
on Facebook or Twitter.
Forward-Looking Statements
This release contains "forward-looking" statements concerning
future events and financial performance. Words such as "expects,"
"anticipates," "estimates," "believes," and similar expressions
typically identify forward-looking statements, which are generally
any statements other than statements of historical fact, . Such
statements are based on current expectations or views of the future
and are subject to risks and uncertainties, which could cause
actual results or events to differ materially from those expressed
or implied. You should therefore not place undue reliance upon any
forward-looking statements and they should be read in conjunction
with, and qualified in their entirety by, the cautionary statements
referenced below. The Company undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise. Key factors,
risks and uncertainties that could cause actual outcomes and
results to be different are summarized in filings with the
Securities and Exchange Commission, including Exhibit 99 in our
Form 10-K, which are available on our website and at www.sec.gov.
Additional factors that might affect: a) our packaging segments
include product capacity, supply, and demand constraints and
fluctuations and changes in consumption patterns; availability/cost
of raw materials, equipment, and logistics; competitive packaging,
pricing and substitution; changes in climate and weather; footprint
adjustments and other manufacturing changes, including the startup
of new facilities and lines; failure to achieve synergies,
productivity improvements or cost reductions; unfavorable mandatory
deposit or packaging laws; customer and supplier consolidation;
power and supply chain interruptions; changes in major customer or
supplier contracts or loss of a major customer or supplier;
inability to pass through increased costs; political instability
and sanctions; currency controls; changes in foreign exchange or
tax rates; and tariffs, trade actions, or other governmental
actions, including business restrictions and shelter-in-place
orders in any country or jurisdiction affecting goods produced by
us or in our supply chain, including imported raw materials; b) our
aerospace segment include funding, authorization, availability and
returns of government and commercial contracts; and delays,
extensions and technical uncertainties affecting segment contracts;
c) the Company as a whole include those listed above plus: the
extent to which sustainability-related opportunities arise and can
be capitalized upon; changes in senior management, succession, and
the ability to attract and retain skilled labor; regulatory actions
or issues including those related to tax, ESG reporting,
competition, environmental, health and workplace safety, including
U.S. FDA and other actions or public concerns affecting products
filled in our containers, or chemicals or substances used in raw
materials or in the manufacturing process; technological
developments and innovations; the ability to manage cyber threats;
litigation; strikes; disease; pandemic; labor cost changes;
inflation; rates of return on assets of the Company's defined
benefit retirement plans; pension changes; uncertainties
surrounding geopolitical events and governmental policies,
including policies, orders, and actions related to COVID-19;
reduced cash flow; interest rates affecting our debt; and
successful or unsuccessful joint ventures, acquisitions and
divestitures, and their effects on our operating results and
business generally.
Media Contacts:
Dan Whelan
Platinum Equity
(310) 282-9202
dwhelan@platinumequity.com
Bradford Walton
Ball Communications
(415) 254-7168
Bradford.walton@ball.com
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SOURCE Platinum Equity