Rexam (4 Millbank, GB – London SW1P 3XR; www.rexam.com) has sold its UK-based flexible packaging business for the food market to Amcor Flexibles Europe (GB-Gloucester GL4 3RT; www.amcor.com) for GBP 11.2m. The business comprises two plants, in Ledbury and Thetford, and had a 2001 turnover of GBP 42m, with net assets of GBP 15m. The deal signifies Rexam´s exit from the UK food flexibles business and will sharpen the group´s focus on its global medical packaging operations.

“Following the three-way merger of Amcor Flexibles Europe, Danisco Flexible and Akerlund & Rausing (see Plasteurope.com 9, 2001) to create the new market leader in flexible packaging in Europe, the acquisition of two of Rexam´s plants in the UK continues the consolidation process of the industry in the region,” said Amcor managing director Russell Jones. “The operations have an excellent strategic fit with our existing businesses in the UK and strengthen our market leadership position. Returns from these businesses will achieve the 15% target within three years.”

AFE says the Thetford plant is a global leader in high barrier vacuum metallising and coating technology for the packaging of fresh food, beverages and confectionery. Ledbury has blown and cast film lines targeting the produce and bakery market sectors. Their acquisition means Amcor now has some 50 manufacturing plants in Europe, generating annual sales of AUD 1 bn and 8,000 employees. Worldwide Amcor has a turnover in excess of AUD 7 bn.