U.S. Can is the largest manufacturer of aerosol cans in the United States. In addition to aerosol cans, the company manufactures paint cans, plastic containers and custom and specialty cans in 10 plants in the U.S. Aerosol cans are also produced in the two manufacturing plants in Argentina. U.S. Can's Argentina and U.S. operations employ 2,300 people and have sales of approximately $600 million.
"U.S. Can will add to our portfolio of rigid packaging products and provide us a meaningful position in a sizable market," said R. David Hoover, chairman, president and chief executive officer of Ball Corporation. "This is a company in an industry we know well. 2006 looks to be a better year for Ball and this acquisition should add to our performance as we expect it will be accretive to our earnings during the first year of our ownership. Further, we expect to realize certain cost reductions as a result of synergies between U.S. Can's operations and those of our existing packaging business, particularly our metal food container operations. Both utilize tinplate steel and both share similar manufacturing processes."
"The $550 million of existing U.S. Can debt will be refinanced at closing at significantly lower interest rates," said Raymond J. Seabrook, senior vice president and chief financial officer of Ball Corporation. "The refinancing will consist of the issue by Ball of a new series of senior notes and an increase in bank debt under the new facilities that were put in place in the fourth quarter of 2005."
Ball Corporation is a supplier of high-quality metal and plastic packaging products and owns Ball Aerospace & Technologies Corp., which develops sensors, spacecraft, systems and components for government and commercial customers. Ball reported 2005 sales of $5.7 billion and the company employs 13,100 people worldwide.