Beverage can maker, Ball Corporation (BLL - Free Report) entered into an agreement to sell its specialty tin manufacturing facility in Baltimore, MD, to U.S.-based Independent Can Company (ICC) for approximately $25 million. This divestiture will help Ball Corporation to focus on maximizing value and generating positive EVA dollars in its core businesses. The deal will also enable the company to better align with its strategic focus on food and aerosol packaging.
The Baltimore plant employs approximately 50 people and manufactures a diverse range of specialty and custom tinplate cans for a range of applications. Ball Corporation acquired the plant in 2006 as part of its acquisition of U.S. Can Corporation.
The plant is an ideal complement to ICC's specialty tin can-focused business. The transaction is expected to close during the fourth quarter of 2016 and the proceeds are subject to customary closing adjustments.
Ball Corporation is poised to benefit from its focus on increasing EVA dollar generation, earnings and cash flow. Its food and aerosol packaging segment’s earnings improved in the second quarter due to strong global demand for aerosol containers and improved operational performance. Initiatives to further improve production efficiencies are on track and set to benefit the segment’s performance in early 2017.
Broomfield, CO-based Ball Corporation is the largest manufacturer of beverage cans in North America. It also supplies aerospace as well as other technologies and services to the government and customers.
Currently, Ball Corporation has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the construction sector are Greif, Inc. (GEF - Free Report) , Avery Dennison Corporation (AVY - Free Report) and AO Smith Corp. (AOS - Free Report) .
Greif has seen upward estimate revisions over the past 30 days. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Avery Dennison, a Zacks Rank #2 (Buy) stock, has witnessed upward estimate revisions over the past 60 days.
AO Smith, which also carries a Zacks Rank #2, has seen solid estimate revisions over the last 60 days.
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