June 12, 2003 / Pechiney Plastic Packaging, has entered into an agreement to acquire Novacel, Mexico's leading custom flexible packaging company for $90 million equal to (€76.8m).

"We are excited at the prospect of welcoming Novacel into our business," said Ilene Gordon, president of Chicago-based Pechiney Plastic Packaging. "We are joining forces with a leading player that competes in a packaging market that is enjoying strong growth. This transaction continues our strategy of expanding globally in selected markets."

Ilene Gordon said that Novacel is an ideal fit for Pechiney Plastic Packaging, pointing to its strong financials; close relations with key customers; focus on value-added packaging; and leading positions in key market segments.

Pechiney Plastic Packaging is one of the world's largest and most diverse manufacturers of flexible packaging, including a wide range of single- and multilayer plain and printed films and laminations, bags, thermoformed trays and bottles. It serves three major markets: meat & dairy; food; and healthcare & specialty. In 2002 sales were approximately$1.3 billion. The company employs approximately 5,000 people in 38 facilities in North America, Europe, South America and Australasia.