EXHIBIT 99.1 PRESS RELEASE
Published on March 28, 2006
Exhibit
99.1
 |
|
News
Release
|
|
For
Immediate Release
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http://www.ball.com
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Investor
Contact:
|
Ann
T. Scott
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303-460-3537,
ascott@ball.com
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Media
Contact:
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Harold
Sohn
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303-460-2266,
hsohn@ball.com
|
Ball
Corporation Completes Acquisition of
U.S.
and Argentinean Operations of U.S. Can Corp.
BROOMFIELD,
Colo., March 27, 2006—Ball Corporation [NYSE:BLL] today completed its
acquisition of the United States and Argentinean operations of U.S. Can
Corporation, adding to Ball’s portfolio of packaging products and making Ball
the largest supplier in the U.S. of aerosol cans, primarily for food and
household products.
Ball
acquired 10 manufacturing plants in seven states and two plants in Argentina.
The operations have sales of approximately $600 million, employ 2,300 people
and
produce more than two billion steel aerosol containers annually. In addition
to
aerosol cans, the acquired operations produce paint cans, plastic containers
and
custom and specialty cans.
Ball
announced early this month that it had hired can industry veteran Michael
W.
Feldser to head up the acquired U.S. Can operations. He will be president
of
Ball’s aerosol & specialty packaging division.
“We
are
pleased to have this acquisition closed so the integration process can begin,”
said R. David Hoover, president and chief executive officer. “We have a track
record for successful integration of acquired businesses, and we intend to
build
on that record.”
Today
Ball announced that the former U.S. Can headquarters in a leased building
in
Lombard, Ill., will be closed. Functions
that had been performed there will be transferred to Ball offices near Denver,
moved to a plant in Elgin, Ill., that is part of the acquisition or in certain
cases eliminated.
The
number of U.S. Can employees who will receive employment opportunities with
Ball
will be determined in the coming weeks, based upon anticipated needs, interest
in relocation and other factors as the integration process
continues.
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more
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Ball
Corporation
10
Longs
Peak Drive ·
P.O. Box
5000 ·
Broomfield, CO 80021
Ball
Corporation - 2
“We
will
implement plans to welcome new employees, meet with customers and suppliers
and
begin to realize the synergy savings we are certain exist and to identify
others,” Hoover said. “We expect to realize consolidation opportunities in the
future as we fully integrate the people and plants into Ball. Closing the
former
headquarters is a first step and should help facilitate the integration process.
We believe this is a business that will benefit considerably from being a
part
of a larger packaging organization, and that our existing packaging businesses
will benefit from having them as part of Ball.”
Raymond J.
Seabrook, senior vice president and chief financial officer, said the
refinancing of the U.S. Can debt was accomplished at significantly lower
rates
through the issue by Ball of a new series of senior notes and an increase
in
bank debt under new facilities that were put in place in the fourth quarter
of
2005.
Ball
Corporation is a supplier of high-quality metal and plastic packaging products
and owns Ball Aerospace & Technologies Corp. Ball reported 2005 sales of
$5.8 billion. With the addition of the employees from U.S. Can, Ball
employs 15,400 people worldwide.
Forward-Looking
Statements
This
news
release contains “forward-looking” statements concerning future events and
financial performance. Words such as “expects,” “anticipates,” “estimates,” and
variations of same and similar expressions are intended to identify
forward-looking statements. Such statements are subject to risks and
uncertainties which could cause actual results to differ materially from
those
expressed or implied. The company undertakes no obligation to publicly update
or
revise any forward-looking statements, whether as a result of new information,
future events or otherwise. Key risks and uncertainties are summarized in
filings with the Securities and Exchange Commission, including in Exhibit
99.2
in our Form 10-K. These filings are available at our Web site and at
www.sec.gov. Factors that might affect our packaging segments include
fluctuation in consumer and customer demand and preferences; availability
and
cost of raw materials, including recent significant increases in resin, steel,
aluminum and energy costs, and the ability to pass such increases on to
customers; competitive packaging availability, pricing and substitution;
changes
in climate and weather; fruit, vegetable and fishing yields; industry productive
capacity and competitive activity; failure to achieve anticipated productivity
improvements or production cost reductions, including those associated with
our
beverage can end project; the German mandatory deposit or other restrictive
packaging laws; changes in major customer or supplier contracts or loss of
a
major customer or supplier; changes in foreign exchange rates, tax rates
and
activities of foreign subsidiaries; and the effect of LIFO accounting. Factors
that might affect our aerospace segment include: funding, authorization,
availability and returns of government contracts; and delays, extensions
and
technical uncertainties affecting segment contracts. Factors that might affect
the company as a whole include those listed plus: acquisitions, joint ventures
or divestitures; regulatory action or laws including tax, environmental and
workplace safety; governmental investigations; technological developments
and
innovations; goodwill impairment; antitrust, patent and other litigation;
strikes; labor cost changes; rates of return projected and earned on assets
of
the company's defined benefit retirement plans; reduced cash flow; interest
rates affecting our debt; and changes to unaudited results due to statutory
audits or other effects.
11/06 #
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