Citigroup Venture Capital agreed to acquire the Southern Graphic Systems packaging design unit of Alcoa. The firm will pay roughly $410 million (€351 million) for the company.
Alcoa first gained control of the Southern Graphic division through its acquisition of aluminium outfit Reynolds Metals Company in 2000. The company noted that the divestiture of the unit was pursued as part of an effort to pare non-core operations and is expected to be completed by the end of December.
Southern Graphic is based in Louisville, Kentucky, and maintains over 30 locations in North America, the UK and Mexico. The company, which has roughly 1,500 employees, counts Nestle and Sysco Corp. among its customers.
Alcoa was advised by Deutsche Bank on the sale.
Meanwhile, in a separate announcement, Alcoa indicated Richard Kelson, the chief financial officer and EVP at the metals giant, had announced his intention to resign in order to “pursue opportunities in the private equity arena”.
There was no mention of where Kelson might land, but the move was said to be effective in the first half of next year.