Rexam has announced the proposed sale of its Pharmaceutical Devices and Prescription Retail Packaging divisions of its Healthcare business in a deal valued at US$805m.
According to the company, the move will enable it to increase its focus on the metal beverage can sector.
The world’s leading beverage can manufacturer, Rexam’s Healthcare business has three divisions: Pharmaceutical Devices, Prescription Retail Packaging and Closures & Containers.
The company is also in discussions regarding the sale of the Closures & Containers division, and says it will provide an update “in due course”.
In a deal expected to conclude around the middle of 2014, Montagu Private Equity has made a binding offer for the Pharmaceutical Devices and Prescription Retail Packaging divisions, subject to consultation with various European works councils, and conditional on the necessary regulatory approvals.
Rexam chief executive Graham Chipchase said: “The sale of the Healthcare business is part of our long-term strategy to maximise shareholder value.
“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.”
In 2012, Rexam Pharmaceutical Devices and Prescription Retail Packaging employed some 1,500 people, and had sales of c.£250m with underlying operating profit of c.£43m before central overheads.
As at 31 December 2012, it had gross assets of c.£538m.
