The acquisition boosts Bemis' share of the global food packaging market from 57 percent to 70 percent at a time when rivals are struggling under a worldwide recession.

The deal for the assets, known collectively as Alcan Packaging Food Americas, includes 23 facilities in the U.S., Canada, Mexico, Brazil, Argentina, and New Zealand, Bemis said Sunday night.

Bemis, which reported a total debt of $617.4 million at the end of the first quarter, said it will borrow $1 billion and issue $200 million in stock. The Neenah, Wis., food and beverage packager recently had about 103.3 million shares outstanding.

Wall Street appeared generally positive about the deal, with Baird analyst Ghansham Panjabi saying in a client note Monday that "despite the modest equity issuance, we believe that the considerable increase in critical mass post transaction for Bemis, and related synergy story will push the shares higher at the open."

Chicago-based Alcan Packaging, which had 2008 net sales of $1.5 billion, will start increasing earnings next year, said Bemis, which expects its current payroll of about 20,000 to grow by 4,600. Pending regulatory approvals, the deal is set to close late this year.

Anglo-Australia miner Rio-Tinto sold Alcan Packaging to cut its $23.9 billion debt, much of which it incurred in 2007 when it bought Canadian aluminum giant Alcan Inc. for $38 billion.

Bemis said the acquisition will boost net sales by 40 percent to some $5.3 billion.

Layoffs are likely, as the company said it expects synergies of $65 million: "These improvements will be achieved primarily by optimizing product mix, improving operational and supply chain efficiencies, and reducing duplicate administrative costs."

Bemis also said it expects to retain its investment-grade bond rating and use its "strong free cash flow to support diligent debt repayment."

A service of YellowBrix, Inc.