Flexible packaging products maker Bemis Company, Inc. (BMS) said Monday that it has completed its $1.2 billion acquisition of the Food Americas operations of Alcan Packaging, a business unit of mining giant Rio Tinto plc.
Under the deal, Bemis acquired 23 Food Americas flexible packaging facilities in the U.S., Canada, Mexico, Brazil, Argentina, and New Zealand which generated net sales of $1.4 billion last year.
Bemis expects the acquisition to be accretive to both GAAP earnings per share and adjusted earnings per share, beginning in 2010.
Bemis received the approval for the deal from the U.S. District Court for the District of Columbia last week. Under the terms of court order, Bemis must divest two facilities, located in Menasha, Wisconsin and Tulsa, Oklahoma. The 2009 net sales associated with the facilities to be sold was about $100 million.
Separately, Bemis said Monday that it expects full year 2010 adjusted earnings to be in the range of $1.95 to $2.10 per share. Analysts polled by Thomson Reuters currently expect the company to earn $2.00 per share for the full year 2010.
Bemis said its full year 2010 adjusted earnings guidance includes the impact of the Alcan Packaging Food Americas acquisition but does not include an estimated $0.06 per share impact of acquisition financing costs as well as severance charges and other items.
The guidance also excludes the results of of operations of the two Alcan Packaging Food Americas plants that will have to be divested as part of the deal.
Bemis shares are currently trading at $29.53, up 26 cents.
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