Sale includes two manufacturing plants and three sales offices.
Novelis Inc., an Atlanta-based aluminum producer, has completed the sale of its North American consumer foil products business to Reynolds Consumer Products LLC, Lake Forest, Illinois, for $33.75 million.
The transaction includes foil manufacturing plants in Toronto and Vancouver in addition to sales offices and distribution facilities located in Montreal; Mississauga, Ontario; and LaGrange, Georgia. Reynolds also will continue to operate a third-party-owned warehouse in Mississauga.
“Our growth plan at Novelis is focused on expanding our recycling leadership and providing premium rolled aluminum products in the automotive, beverage cans, light gauge and specialties markets,” says Marco Palmieri, senior vice president of Novelis and president of Novelis North America. “The consumer foil products business, while successful, is not aligned with this strategy.”
Reynolds says its new assets will be operated by a newly formed subsidiary, Reynolds Consumer Products Canada Inc., and will provide a growth platform for foil and other household products. The business will continue to produce consumer and foodservice foil products, including Alcan aluminum foil paper, containers and aluminum foilware.