Exal Packaging Sale Plan Is Being Shelved by Teachers Fund

(Bloomberg) -- Ontario Teachers’ Pension Plan Board has dropped plans for now to sell specialty aluminum containers manufacturer Exal Corp., people familiar with the matter said.

The pension fund manager appointed advisers this year to sell the company for as much as $1 billion but has shelved the process, said the people, who asked not to be identified because they weren’t authorized to speak publicly. Bids for the company came in below the target price, which was based on earnings before interest, taxes, depreciation and amortization of about $80 million a year, one of the people said.

A representative for Ontario Teachers declined to comment. An Exal representative didn’t immediately respond to requests for comment.

The pension fund could restart efforts to sell the company, the people said.

Exal, based in Youngstown, Ohio, produces a range of containers for aerosols, beverages and food and has substantial operations in South America. The company has experienced some weakness in its Argentina operations in recent months, which was a factor in the lower-than-expected offers, one of the people said.

Ontario Teachers led an investor group that bought a majority stake in Exal in 2010. The company, founded in 1993 by former chief executive officer Delfin Gilbert, has been led by CEO Michael Mapes since January 2016, according to its website.

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