Global consumer packaging company Rexam has announced the proposed sale of its Personal Care business for a total of $709m (£452m).
The business is being sold in two parts: the Cosmetics, Toiletries and Household care products business (CTH); and the High Barrier Food packaging business (HBF).
An affiliate of Sun Capital Partners Inc, a private equity firm, has reportedly made a binding offer for CTH for a total of $459m in cash, subject to consultation with various European works councils.
And a subsidiary of Silgan Holdings Inc, a leading US-based supplier of packaging for consumer goods products, is said to have agreed to acquire HBF for $250m in cash.
As a result of the sale, Rexam will carry out a restructuring programme to remove residual overheads which, together with certain separation costs, will give rise to an exceptional charge of some £40m in 2012, of which £25m will be cash costs. Ongoing, there will be £7m of annual retained fixed costs which will be absorbed by the Beverage Cans and Healthcare businesses.
The company says the transactions are expected to complete in Q3 2012 for HBF and Q4 2012 for CTH. Both transactions are subject to certain adjustments at completion and are conditional on certain regulatory approvals.
Following completion, Rexam plans to return around £370m (at current exchange rates) to shareholders.