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Article: Bemis buying Rio Tinto food packaging division $1.2 billion deal could mean market dominance
- Article from:
- The Milwaukee Journal Sentinel (Milwaukee, WI)
- Article date:
- July 7, 2009
- Author:
CopyrightCopyright 2009 The Milwaukee Journal Sentinel. Provided by ProQuest LLC. (Hide copyright information)
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With its largest acquisition ever, Neenah-based Bemis Co. could
become the world's dominant maker of plastic wrap used in the food
industry.
The company, which makes flexible plastic wrap for foods such as
steaks and cheese, has agreed to pay $1.2 billion in cash and stock
for the U.S. food packaging business of Rio Tinto PLC, an Australian
mining company.
The deal is expected to close by the end of the year, Bemis said
Monday. It could increase the company's sales by 40% and increase
its share of the global food packaging market to 70% from 57% at a
time when rivals are struggling in the recession.
It boosts the company's "critical mass" in the packaging business
for only a modest amount of ...