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FLEXO Magazine : August 2009
INDUSTRY INDICATORS PRESSING ISSUES Bemis Buys Alcan Businesses Bemis Co. Inc. has signed a defi nitive agreement to acquire the Food Americas operations of Alcan Packaging, a business unit of international mining group Rio Tinto plc, for $1.2 billion. Bemis will acquire 23 Food Americas fl exible packaging facilities in the U.S., Canada, Mexico, Brazil, Argentina, and New Zealand. These facilities produce fl exible packaging for the food and beverage industries. For the year ended Dec. 31, 2008, Al- can Packaging Food Americas recorded net sales of $1.5 billion and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of approximately $166 million. The purchase price represents an adjusted EBITDA multiple of approximately 6.7 times when taking into account the estimated $100 million of tax benefi ts related to the structuring of much of the transaction as a purchase of assets. Further adjusting the valuation for estimated annual runrate synergies of $65 million results in an adjusted EBITDA multiple of approximately 4.8 times. The transaction is expected to close by the end of 2009, subject to customary closing conditions and regulatory review. It will increase Bemis’ global presence by adding nearly 4,600 employees to Bemis’ global workforce for a total of more than 20,000 employees at 84 international manufacturing locations. It also is expected to offer substantial synergy opportunity as Bemis expects more than $65 million of annual run-rate pre-tax synergies to be achieved by the end of the second year following the acquisition date. Muller Martini Launches VSOP Printing Press Muller Martini has acquired patents for the VSOP technology from Drent Goebel. A new Muller Martini VSOP series, offering fl exible package and cardboard printing, will be launched by the end of 2009. By combining the new VSOP series with its existing Alprinta and Concepta product lines, Muller Martini will provide printers with a comprehensive array of solutions. Complimentary consulting services will give printers individual advice on expanding 16 FLEXO AUGUST ALTANA Acquires Water Ink The specialty chemicals group AL- TANA has entered into an agreement to acquire the business of the North American company Water Ink Technologies Inc. The company produces primarily water-based and UV inks, coatings and varnishes for narrow web applications at three sites in North Carolina. Water Ink Technologies will be integrated into the ACTEGA Coatings and Sealants division under the new name ACTEGA WIT. The existing Water Ink Technologies management team, under the leadership of Michael C. and Patrick S. Hague, will continue to run the operations also under the roof of ALTANA. “I am pleased that with ALTANA we found an excellent new parent for our business,” stated Michael C. Hague, president of Water Ink Technologies. “ALTANA stands for a clear strategy, stability and continuity. I am convinced that we will prosper and our success story will continue under its new owner. ALTANA’s global presence and its competence in the graphics industry are an excellent basis to expand our product offering and our business also in Europe and Asia.” into the manufacture of packaging and other commercial printing opportunities. Muller Martini understands that several questions remain unanswered about the transition period and the Drent installed machine base. Customers can contact Andy Fetherman, manager, Press Division, at 631-582-4343 ext. 1315 for questions and information relating to the new product line. Diageo Announces Further Restructuring Diageo has identifi ed further restructuring opportunities which are expected to give rise to cost savings of approximately £40 million ($65 million) per annum in the year ending June 30, 2012. In addition, the cost of production of maturing stocks will be reduced by about £10 million ($16 million) per annum in the year ending June 30, 2011. This will initially be refl ected in the value of inventory and will not be refl ected in reduced cost of goods sold until future years. As part of these restructuring projects, changes to supply operations in Scotland have been announced including: 2009 www.flexography.org • The consolidation of packaging operations from three sites, at Kilmarnock, Glasgow and Fife, to two sites and the closure of the packaging plant at Kilmarnock. • The closure of the Port Dundas distillery and the adjacent cooperage. • The outsourcing of certain warehousing operations. In February 2009, Diageo announced a restructuring program, which was estimated to reduce costs by £100 million ($163 million) in the year ending June 30, 2010. The related restructuring charge was estimated to be £200 million ($331 million). It is now estimated that this restructuring program will result in a year on year cost