| Deal Description | Continental Can Company, Inc., added the net proceeds from this transaction to its general funds. Such funds were available for general corporate purposes, including plant and equipment replacements and additions and additional working capital requirements necessitated by higher price levels and larger volume of business, including defense orders. At the time of the deal, the company and its subsidiaries were engaged in major expansion programs. The company planned to continue expenditures for new facilities and the replacement of machinery equipment. The program included major expansion of the Fibre Drum and Paper Container Divisions through the purchase and installation of a new Fourdrinier papermaking machine in Hopewell, Virginia, the modernization of equipment at that location, the erection of a new fibre drum plant in Pittsburg, California, the expansion of paper container facilities in Los Angeles and Memphis, and the erection of two new plants for the manufacture of paper containers at locations to be selected. Major expenditures in the metal division were expected to include additional can-making equipment, building additions and increased facilities at some locations, and two or three new plants. |
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