Alcoa announced it has agreed to sell its Russellville, Ark., and St. Louis, Mo., foil facilities -- Alumax Foils -- to JW Aluminum. Terms were not disclosed. The sale is expected to be completed by the end of this month.
The sale is part of Alcoa's previously announced divestiture program to sell certain non-core businesses. Proceeds from the sale will be used to pay down debt.
Alumax Foils manufactures aluminum foil for sale to converters, who further process the foil to be used in pharmaceutical packaging, foodservice and other flexible packaging, industrial tapes, insulation, and various other end-uses. The business is fully integrated, including casting capability, and sells foil from light to heavy gauge in a variety of widths. It's the third largest producer of foil in North America and employs approximately 300 people at the two facilities.