22.09.2022

Leading global packaging manufacturer Ball Corporation has closed the sale of its Russian business. The transaction included three factories producing aluminium cans for beer and soft drinks: in Naro-Fominsk (Moscow Region), Vsevolozhsk (Leningrad Region), and Argayash (Chelyabinsk Region).

The consolidated revenue of Ball’s Russian factories in 2021 was RUB 43.8 billion, with EBITDA of RUB 11.3 billion. More than 900 people work at the company’s factories.

The share of Ball Corporation in the domestic market of Russia was about 70% in 2021. The operation of dozens of food industry companies in Russia and countries of the Eurasian Economic Union depends on the stable work of packaging manufacturers. The sold factories are fitted with modern equipment and have no problems with raw materials, since aluminium produced by UC RUSAL is used for packaging production.

In March 2022, Ball Corporation announced its intention to sell its Russian business. ‘This decision is the result of many months of consideration, delivering a solution that best secures the future of Ball’s colleagues and assets in Russia. We believe this is a sound outcome for Ball in these geopolitical circumstances,’ Dan Fisher, president and CEO of Ball Corporation, said.

Ball‘s Aluminium Aerosol division has had the opportunity to work with the highly professional team at Arnest Group in the past. The closing of this transaction is not subject to any encumbrances, and all required approvals have been obtained. The sale is not expected to impact Ball’s businesses outside of Russia.

In September, based on the results of the tender, Arnest Management LLC, part of Arnest Group, was awarded the right to complete the transaction. On September 19, 2022, Arnest Management LLC received permission from the Government Commission on Monitoring Foreign Investment to close the transaction on the terms agreed with the seller.

The change of ownership will not affect the stable operation, as Arnest Group has the required expertise and its own production of aluminium packaging for aerosol products.

Arnest Group
Arnest (a member of the Aluminium Association) is Russia’s largest company in the field of production and sale of perfumery, cosmetics and household products in aerosol packaging. It is the leading domestic manufacturer of aerosols with a market share of over 50%. The company’s portfolio includes about 40 own brands, many of which are leaders in their categories. The company is also engaged in the production of aluminium slugs, and aerosol aluminium cans.