SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
June 23, 1998
REYNOLDS METALS COMPANY
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(Exact name of registrant as specified in its charter)
Delaware 1-1430 54-0355135
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(State of Incorporation) (Commission (IRS Employer
File Number) Identification Number)
6601 West Broad Street
P.O. Box 27003
Richmond, Virginia 23261-7003
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(Address of Principal Executive Offices,
including zip code)
(804) 281-2000
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(Registrant's Telephone Number, including area code)
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Item 5. Other Events.
The Registrant announced on June 23, 1998 that it has signed
a letter of intent to sell its rolling mill in North Alabama and
certain related assets to Avalon-Borden Companies, Inc.
Assets included in the sale are the Registrant's Alloys
rolling mill, two nearby reclamation plants that provide input
metal to the mill, and the Sheffield coil coating facility. The
principal product manufactured is aluminum sheet used to produce
beverage cans and ends. The four operations employ approximately
1,600 people.
The transaction is expected to close in the second half of
the year. While the terms of the transaction were not disclosed,
the Registrant expects to realize a loss, after tax, in the range
of $175 million to $200 million, or $2.40 to $2.75 per share.
The sale is subject to regulatory and board approvals,
negotiation and execution of definitive agreements, third-party
consents (including consents from key customers and suppliers),
completion of financing for the transaction by Avalon-Borden and
other customary closing conditions. The transaction is part of
the Registrant's previously announced Portfolio Review process to
improve corporate performance and strengthen its financial
position.
Avalon-Borden Companies, Inc. is a privately held
corporation with headquarters in Montgomery, Alabama. Avalon-
Borden owns Avalon Media, a digital ad insertion company, as well
as Global Interconnect, a manufacturer of digital insertion
equipment.
This filing contains forward looking statements. Actual
results could differ materially from those that may be projected.
Please refer to the Management's Discussion and Analysis in the
Registrant's Quarterly Report on Form 10-Q for the quarter ended
March 31, 1998 for a summary of key risk factors that could
affect results.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
REYNOLDS METALS COMPANY
By: /s/ D. Michael Jones
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D. Michael Jones
Senior Vice President and
General Counsel
Dated: June 29, 1998
