ATLANTA, July 1, 2014 — Novelis Inc., the world leader in aluminum rolling and recycling, today announced that it has completed the sale of its North American consumer foil products business to Reynolds Consumer Products LLC for $33.75 million. Reynolds has acquired units that relate to the manufacturing and supply of aluminum foil wrap and semi-rigid aluminum containers intended for use in various applications relating to food.
“Our sole focus as a CPG company is producing quality consumer products and we look forward to expanding business operations and capacity. This purchase provides the infrastructure to allow greater flexibility and growth in additional markets, said Lance Mitchell, CEO, Reynolds Consumer Products. “We will leverage our scale to operate efficiently while maintaining product quality and service.”
The transaction includes foil manufacturing plants in Toronto, ON, and Vancouver, BC, in addition to sales offices and distribution facilities located in Montreal, QC; Mississauga, ON; and LaGrange, Ga.
Our growth plan at Novelis is focused on expanding our recycling leadership and providing premium rolled aluminum products in the automotive, beverage cans, light gauge and specialties markets, said Marco Palmieri, Senior Vice President of Novelis and President of Novelis North America. The consumer foil products business, while successful, is not aligned with this strategy.
Over the past couple of years, Novelis has invested approximately US $1.7 billion in global expansion projects in order to serve growing market needs. However, this sale comes after the company sold three European aluminum foil and packaging plants in July 2012 and closed its British plant, which made confectionary packaging, in 2011.
Novelis reported fiscal revenues of US $9.8 billion in 2013, down from $11 billion in 2012. The company currently supplies rolled aluminum for the automotive, beverage-can, consumer electronics and architecture markets.
Reynolds, based in Lake Forest, Ill., has its branded and private label products available in the U.S. at mass merchants, grocers, and other retail stores, and in over 100 countries throughout the world.
For more information visit the website: www.novelis.com or www.reynoldsconsumerproducts.com
