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Showing posts with label Rexam. Show all posts
Showing posts with label Rexam. Show all posts
Tuesday, January 8, 2013
Investopedia: MeadWestvaco's Sum Of The Parts Doesn't Seem To Add Up To Value
MeadWestvaco (NYSE:MWV)
has always been a little more willing than average to realign its
business towards better long-term returns for shareholders. To that end,
the company has been willing to divest/sell businesses (including its
consumer and office products business (which merged with ACCO Brands (NYSE:ACCO))
while acquiring packaging and chemicals businesses in faster-growing
areas like Brazil and India. That said, while MeadWestvaco does indeed
look like a well-run packaging and specialty chemicals company, it's
difficult to generate a cash flow scenario that suggests these shares are dramatically undervalued.
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Friday, January 4, 2013
Investopedia: With Ball Corp, Quality Doesn't Come Cheap
It's always a great thing to acquire the shares of a quality company at a discount to their long-term fair value. Unfortunately, those opportunities are not all that common; while it's my experience that there's always some
quality companies trading below fair value, an investor may have a long
wait when it comes to particular companies. To that end, while I
believe Ball Corp (NYSE:BLL) is a fine company, and maybe the best in packaging, today's valuation doesn't look like any particular bargain.
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Wednesday, August 31, 2011
Investopedia: Industry At A Glance - Packaging
Packaging is scarcely ever noticed, but it is everywhere. A quick trip to the supermarket or pharmacy will show not only the ubiquity of packaging products, but the wide scope of form and function that is available to food, beverage, personal care and healthcare companies. There is certainly a cyclical aspect to the packaging industry and input costs are always significant, but investors may want to give this industry more than just a passing thought. There are certainly some interesting companies out there today and some of these stocks could be interesting at current values.
Ball Corp (NYSE:BLL)
Ball Corp is quite simply the world's largest metal beverage container manufacturer, with about 40% share (rivals Crown Holdings (NYSE:CCK) and Rexam have roughly 20% share each). Ball's customer list is largely a roster of who's who in the beverage industry - soft drink makers like Coca-Cola (NYSE:KO) and PepsiCo (NYSE:PEP), as well as brewers like Anheuser-Busch InBev (NYSE:BUD). Ball Corp certainly has some vulnerability to higher metal prices, but the company's market position is such that it can pass on at least some of this to its customers. The bigger threat to Ball Corp may be substitution, as plastic containers make further inroads into the beverage sector.
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Ball Corp (NYSE:BLL)
Ball Corp is quite simply the world's largest metal beverage container manufacturer, with about 40% share (rivals Crown Holdings (NYSE:CCK) and Rexam have roughly 20% share each). Ball's customer list is largely a roster of who's who in the beverage industry - soft drink makers like Coca-Cola (NYSE:KO) and PepsiCo (NYSE:PEP), as well as brewers like Anheuser-Busch InBev (NYSE:BUD). Ball Corp certainly has some vulnerability to higher metal prices, but the company's market position is such that it can pass on at least some of this to its customers. The bigger threat to Ball Corp may be substitution, as plastic containers make further inroads into the beverage sector.
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Monday, June 20, 2011
Investopedia: Silgan Sees A Good Deal Crumple
Investors had many good reasons to be enthusiastic about Silgan's (Nasdaq:SLGN) announced merger with Graham Packaging (NYSE:GRM). Not only was the company in place to benefit from significant operating synergies and tax benefits, Graham would have given the company an invaluable plastics packaging business - an increasingly important consideration in a world that seems to be moving away from Silgan's traditional metal packaging.
Unfortunately, Silgan was not the only company to see value in Graham's assets. New Zealand-based Reynolds Group Holdings came in near the eleventh hour and made a counter-offer that Graham's board could not refuse.
The New Deal
Graham informed Silgan and the market that another bidder had emerged and offered $25 in cash for each share of Graham Packaging. That was a significant improvement over the deal Silgan offered - a deal that had been worth about $19.56 at the time of the agreement, but one that incorporated a significant Silgan equity component (meaning that the actual deal value changed every day with Silgan's share price). On a fair like-for-like basis and considering Silgan's share price, Reynolds' offer was ultimately about 14% better and had the added benefit of being an all-cash deal.
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Unfortunately, Silgan was not the only company to see value in Graham's assets. New Zealand-based Reynolds Group Holdings came in near the eleventh hour and made a counter-offer that Graham's board could not refuse.
The New Deal
Graham informed Silgan and the market that another bidder had emerged and offered $25 in cash for each share of Graham Packaging. That was a significant improvement over the deal Silgan offered - a deal that had been worth about $19.56 at the time of the agreement, but one that incorporated a significant Silgan equity component (meaning that the actual deal value changed every day with Silgan's share price). On a fair like-for-like basis and considering Silgan's share price, Reynolds' offer was ultimately about 14% better and had the added benefit of being an all-cash deal.
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