Rio Tinto Limited (RIO) and Amcor Limited (AMC) announced the completion of the sale and acquisition of the Alcan Packaging businesses. Amcor said the US$1,948 million acquisition would provide it with leading global positions in the nominated strategic growth markets for flexible packaging and folding carton packaging for tobacco.

On 18 August 2009 Rio announced the receipt of a binding offer from Amcor for these businesses for a total consideration of US$2,025 million.

The company said today’s completion excludes the Alcan Packaging Medical Flexibles operations in the US, with the sale of these operations the subject of an ongoing detailed market review by the US Department of Justice.

Amcor said today’s purchase price represents a PBITDA multiple of 5.1 times based on earnings for the year ended 31 December 2009 of US$383 million.

The added that earnings for the Alcan Packaging businesses acquired increased in the second half of the 2009 calendar year.

Amcor’s managing director and CEO, Ken MacKenzie, said the businesses the company acquired are strongly aligned with its nominated growth segments, and provide the ability to substantially improve the value proposition for its customers.

“We are now focused on ensuring seamless integration of these businesses and on achieving the synergies and opportunities offered by this acquisition,” Mr MacKenzie said.

Rio Tinto chief financial officer, Guy Elliott, said the completion of the transaction is another significant step in the recapitalisation of the company’s balance sheet having completed divestments of US$5.6 billion since the start of 2009.

”These proceeds, together with the proceeds from our successful rights issues and strong underlying cash flows, provide us with the flexibility to pursue value adding investment opportunities as they arise,” Mr Elliott said.

At the close of trade yesterday, Amcor shares were trading at $5.86, while Rio Tinto shares were trading at $67.41.