Novelis sells North American aluminum foil business to Reynolds
NEW YORK (Reuters) - Novelis Inc NVLX.UL said on Tuesday it has agreed to sell its North American consumer aluminum foil business to Reynolds Consumer Products Inc PACKHO.UL for $35 million as part of its drive to focus on higher-margin markets such as automotive.
The Atlanta-based company said the sale includes plants which make household foil and wrap in Toronto and Vancouver, and sales offices and distribution facilities in Montreal and Mississauga, Canada and in LaGrange, Georgia.
"It is not aligned with Novelis' growth strategy," said Marco Palmieri, Senior Vice President and President of Novelis North America, in a statement.
The world's largest rolled aluminum products maker has increased its focus on making value-added products for the automotive and beverage can sectors.
The deal comes after the company sold three European aluminum foil and packaging plants in July last year and closed its British plant, which made confectionary packaging, in 2011.