Apr 5 2010
Rio Tinto has received a binding offer from Sun European Partners, LLP (Sun European Partners) to acquire the Alcan Beauty Packaging business. The terms of the offer are confidential.
A period of exclusivity with Sun European Partners has been agreed, and Rio Tinto will respond to this binding offer following consultation with the relevant European works councils.
Guy Elliott, chief financial officer, Rio Tinto, said: "This binding offer is another important step towards completing the divestment of the Alcan Packaging businesses. Sun European Partners has a strong track record of investing in the packaging industry. We believe the offer is in the interests of all stakeholders and represents a good outcome for our shareholders."
The Beauty division employs around 8,000 people, operates 26 plants in 12 countries and is a global leader in the plastic beauty packaging market. Alcan Beauty Packaging is the only part of Alcan Packaging still owned by Rio Tinto, with the exception of the Medical Flexible operations in the US which are the subject of an agreed transaction with Amcor that is currently under review by the US Department of Justice.
Sun European Partners is the European adviser to Sun Capital Partners, inc, a global private investment firm with offices in Europe. It has significant experience in the paper and packaging market.
Completion of the potential transaction would be subject to customary closing conditions.
Rio Tinto has now completed divestments in excess of $10 billion since the beginning of 2008. In 2010, the Group has completed divestments of US$3.5 billion comprising Alcan Packaging Food Americas, Alcan Packaging global Pharmaceuticals, global Tobacco, Food Europe and Food Asia divisions, Vickery (Coal & Allied) and Maules Creek (Coal & Allied).