Anheuser-Busch InBev to sell three can plants, one lid plant to Ball Corp.
Anheuser-Busch InBev’s Metal Container Corp. will sell four metal beverage can and lid manufacturing plants to Ball Corp., a big supplier of metal and plastic packaging for the food and beverage industries. Price tag: $577 million in cash.
Ball will continue to supply Anheuser-Busch InBev with metal beverage cans and lids from the plants. And here is a spot of unexpected good news for employees: As part of the acquisition agreement, Ball has committed to offer employment to each active employee of the plants.
The can plants are located in Fort Atkinson, Wisc., Columbus, Ohio, and Rome, Ga. The divested lid plant is in Gainesville, Fl. The plants are fairly focused on soft drinks.
These are apparently not slouch assets. In the first full year of operation, Ball expects the plants to generate $680 million in revenue and $94 million of earnings (before interest, taxes and depreciation.) The plants produce about 10 billion aluminum cans and 10 billion easy-open can ends per year. The facilities employ about 635 people.
Metal Container Corp.’s remaining holdings - seven metal beverage can and lid manufacturing plants - will be more focused on beer-can production. Anheuser-Busch InBev said there are no plans or activities underway to sell the remaining plants.
The sale of the plants represents another step in the brewers debt-repayment program, chief executive Carlos Brito said in a statement. The deal also allows Anheuser-Busch InBev to keep the facilities that are “most relevant” to its beer business, Brito said.
“We have great respect for Ball Corporation and are pleased to have found a strategic buyer that shares our high opinion of these facilities and their employees,” Brito said.
The transaction is expected to wrap up at the end of the year or early in the first quarter of 2010.
So, the chatter about an impending sale that Lager Heads reported earlier this week turned out to be more or less accurate. Hooray for rumor and innuendo! Thanks to readers who contacted us with the scoop.
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Jeremiah McWilliams is a native Virginian who came to the Post-Dispatch in early 2007 to cover beer and other consumer products. He previously covered manufacturing for the Virginian-Pilot newspaper in Norfolk, Va. He is a graduate of Washington and Lee University. 
As far as MCC goes, we have always been a tiny little hidden gem in the AB machinery. Managed completely different than everything else in Ab’s portfolio. Even Brito was pondering this shortly after the buyout. We have always been better managed than AB, and were supposed to be the prototype for AB to change their management system 20 years ago. If it worked with us, then it was going to be applied to the corp…The Demming management system was the guidelines…Multitasking and complete committment to the process. And we went from a losing, last place company within AB, To a profitable diamond in the entire industry. A thorn in the side of every competitor. All the August Busch’s since our inception have been asked in every meeting with investors when they were going to sell us. They never would. But now some of us lucky ones will take our number one producing can plant in the world, and work for a business that only cares about making cans..We are extremely excited about this..we get to strut our stuff for employers that want to see us do it and are not totally concerned more with Beer sales or Shamu. Now we always understood that the beer was more important, But if they had stuck with the original plan and changed management systems 25 or 20 years ago, no one would have ever been able to approach them…We can’t wait to work for people that will appreciate that fact…
As an employee of Mcc this is an exciting time but also a time to hope Ball does keep us and not change pay scales or benefits. We are looking forward to our time to shine. I will always be proud to work in a world class manufacturing plant with the best AU and spoilage #’s around.
Maxamillion2- you guys get 4 weeks of Vac!! We only get three!
Ball purchased the four properties that fit their needs.The other four properties no one was interested in or had the money available to spend.So AB to save face came up with this ” core business crap again”.The industry capacity to produce and the market need are so closely aligned now in the container business that AB has leverage when negotiating can price even if they sold all their packaging facilities, and was dependent totally on buying cans from outside sources.As far as those who are worried about their benefits,you should have voted the union in (Rome)when you had the chance.At least Ball would have to negotiate with the union.But I guess selling your souls to the devil for that extra $6500 a year if you actually got it was more important.You had no backbone then and you want have any now.
Anyone entering into a supply agreement with these unethical cutthroats is asking to get screwed. Brito has no reservations about breaching contracts with suppliers and others and has proven this by his actions. Good luck to anyone that deals with this Psychopath - You’re gonna need it. This deranged foreigner is way over the top and out there big time.
I have worked at a Rexam can plant for 35 yrs. and have a friend who works in supervision for MCC. My 2 cents worth, if you worked for MCC and will now work for Ball you will have “job shock” when Ball is done with you. The can business is tough and Ball will make your life tougher. I am a proud union worker and we try to organize other non-union Rexam plants and also Ball plants (one being only an hour away). I can state flatly they do not receive the wages, health insurance, pension and certain fringe benefits that MCC does. BallTGuy knows what he is talking about (a can man no doubt) what many do not mention here is the quality of life/work. Our other non-union Rexam plants and Ball run their plants under a blanket of fear. OK I am biased, but I think union workers leave a somewhat better existence. I truly believe, and this can be proven, as union’s wither so does the quality of life in our great country. We have millions of working poor who work part-time with no or little health insurance and sub-standard wages while the parent company makes HUGE profits. ie Walmart and many more! Tell me what you think out there ex MCC workers.
As far as Unions go we have not needed one. Our pay and benefits have been excellent so far. By far the best in the area. They have of course jacked us around here and there but nothing life changing. Only 3 weeks vacation was our main gripe. Corporates exact word “You guys only work half the year anyway”! Our hope is that Ball does not drastically reduce the quality of our wage and benefits as to make it not worth working there anymore. A union may be the answer-only time will tell!
MCC……….All 4 plants need to enter in contract with Ball as one .Rome and Fort you need to read our contract we have at Columbus.One thing is for sure brito did not want us! Ball does I hope we will be better off working for an AMERICAN company.
Rome has had no need for a Union, we are thinking that we should at least see what Ball has to offer before we go ruffling their feathers, just remember, Ball doesnt have to offer us a job. An in response to Realitycheckjaxmcc comments,Rome has always had a backbone and we continue to have one! We are very honored to be joining Ball, the worlds largest can makers, all I can say for Jax is you better hope Rexam, Crown or Silgan comes along and picks you up or your in for a rude awakening! Rome, Gainsville, Fort and Columbus are the lucky ones!
We will never, ever, enter into a contract with you guys. Why should we? We produce over 13,000,000 cans a day with 34 members per crew…Cans per thousand we can not be touched….Period..Do you think Ball is going to gloss over this fact…Do you think they are Blind? A joint contract would benefit YOU, but kill us…Maybe you should throw out your union and start multitasking and stop relying on those dopes who control you. Even the Brewery Union couldn’t prevent them from going to 8 hour days and losing tons of overtime…Why would YOUR Union fight for us when they can’t even fight for themselves…As far as being spineless JAX…why dont you WIPE THE SMOKE FORM YOUR EYES AND try standing up to management as an individual and persuing your goals instead of hiding behind your shop stewart…Hell we can argue any point with management, and do, without the fear of any reprisals…Except for a few malcontents, Who are actually glorified primadonnas, we don’t care for your attitude toward the company, your attitude toward work, or your general attitude period….We have carried you, and your toxic subsoil, for 16 years. We are tired of it…Rome and Fort are going to Ball. No matter what happens, we will be the bain of your existence.. We thrive on numbers…What is the days production, that is what we care about…in return…The 6500$ you mentioned, youmight want to increase that a little, and yes we do get it…constantly, as long as we produce…no laurels here..we dont sit on them, but we are well aware of who we are…and what we mean to the company..
Hey MickyDry sorry to hit such a sensitive spot.The 13,000,000 might impress some people but since your au is only 85.70% as of May theres close to 2,000,000 more you could have made,so obviously you are resting on your lauerals.A good can facility knows what they have done today,its what they do tomorrow when they try to get that little extra they left on the floor the previous day back is where the rubber meets the road.Being close to twenty years newer then us you should be making us look like rookies, our au is 84.9 and our spoilage 2.66 versus your 2.58 so where are you carrying anybody.Maybe you should take that gainshare and buy a dictionary, its steward not stewart.