Southern sold for $410 million

has agreed to sell Southern Graphic Systems, its packaging design and imaging business, to Citigroup Venture Capital Equity Partners (CVC) for approximately $410 million. The sale is expected to close by the end of December 2005.

Southern Graphic Systems provides packaging design solutions to enhance brand identity on a global scale and shorten clients' 'time-to-market' demands.

The business became part of Alcoa through the acquisition of Reynolds Metals Company in 2000 and is being sold as the business is not core to the company.

Southern Graphic Systems, based in Louisville, Kentucky, has more than 30 locations in the United States, Canada, the U.K. and Mexico and has approximately 1,500 employees. Deutsche Bank served as a financial advisor to Alcoa on the transaction.