Rexam to sell healthcare divisions

Source：Rexam PLC Release Date：2014-02-07 341

Food & Beverage

The company says the sale of three healthcare divisions will allow it focus on the can beverage packaging business.

In a move to direct future efforts to its beverage cans business, Rexam PLC has agreed to sell the Pharmaceutical Devices and Prescription Retail Packaging divisions of its Healthcare line to Montagu Private Equity, for $805 million. The Healthcare business consists of Pharmaceutical Devices, Prescription Retail Packaging and Closures & Containers. Rexam is still in discussions on the sale of Closures & Containers.

In 2012, Pharmaceutical Devices and Prescription Retail Packaging employed some 1,500 people and had sales of c.￡250m and underlying operating profit of c.￡43m before central overheads. As at December 2012, it had gross assets of c.￡538m.

Following completion of the sale of Pharmaceutical Devices and Prescription Retail Packaging, Rexam plans to return to shareholders around ￡450m, which, it is anticipated, will be effected by way of a redeemable B share scheme together with a share consolidation.
Company chief executive Graham Chipchase, said, “The sale of the Healthcare business is part of our long term strategy to maximise shareholder value. The Pharmaceutical Devices and Prescription Retail Packaging divisions represent the majority of the value of our Healthcare business. Following the sale of Healthcare, we will be a focused beverage cans business with a strong financial position. Our strategy is to balance growth and returns and we will continue to pursue selective investment opportunities in beverage cans in higher growth markets.”
The transaction, to be completed this year, is subject to consultation with European works councils and is conditional on regulatory approvals and subject to adjustments at completion. (Photo courtesy of Rexam)
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