Ball Corp., the world’s largest manufacturer of aluminum beverage cans, has sold its business in Russia to the Arnest Group for $530 million.
“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,” Ball president and CEO Dan Fisher said in a press release. “We believe this is a sound outcome for Ball in these geo-political circumstances.”
Arnest is “the largest manufacturer of perfume, cosmetic and household products in aerosol packaging in Russia,” and Ball’s aluminum aerosol division has collaborated with Arnest in the past.
Ball announced its intention to exit Russia in March, one month after Russian military forces invaded Ukraine. That news came one week after the company said it was continuing to operate its Russian facilities in compliance with laws and sanctions, but had suspended future investment in the country.
Ball, which has had a presence in the country since the 1990s, operated three Russian facilities located in Moscow, Vsevolozhsk and Argayash. Together in 2021, they accounted for 4% of the company’s total net sales and 8% of its total comparable operating earnings. The Russian facilities produced 5% of the 112.5 billion cans Ball shipped last year.
The sale to Arnest “is not expected to impact Ball’s businesses outside of Russia,” the company said. The deal’s closing is not subject to any conditions, and Ball has secured all required approvals for it to proceed.
Several global brewers have also pulled out of Russia in the wake of its invasion of Ukraine, including Heineken N.V, Carlsberg and Anheuser-Busch InBev.