Rexam has signed an agreement to acquire a 51% stake in Saudi Arabia-based beverage can maker United Arab Can Manufacturing Limited (UAC), in a deal valued at US$122m.
Making beverage cans and can ends, UAC’s plant in Dammam has a capacity of 1.8 billion cans in both standard and specialty sizes, generating an EBITDA of c $29 million in 2012.
“While the plant is operating well, given our own global scale and technical expertise, we see a number of opportunities for synergies,” says Rexam chief executive Graham Chipchase.
“Growth prospects for the beverage can in the Middle East are attractive and we look forward to working together with our partners in UAC to lead further expansion in the region.”
The transaction is subject to regulatory approvals and is expected to complete in Q3 2014.
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