Consumer packaging and beverage can maker Rexam (London / UK; www.rexam.com) has signed an agreement to acquire Truepack (www.truepackindia.com), a leading manufacturer of primary packaging in plastics for the pharmaceutical industry based in Bangalore / India. The Truepack deal was made for a cash consideration of GBP 5m (EUR 7.4m), including borrowings assumed and is subject to Indian regulatory approvals.

During the financial year ended 31 March 2006, Truepack had sales of GBP 2m, almost exclusively in the domestic market. It has recently been granted approvals by US authorities to export a number of its products into the US market. The company has one manufacturing site at Bangalore, where it produces eye, ear and oral dropper bottles, nasal spray bottles and tamper evident closure systems.

Rexam has further consolidated its position in India through the formation of a joint venture with the Hindustan Tin Works (HTW, New Delhi / India; www.hindustantin.biz) to start up a beverage can plant. Lars Emilson, Rexam´s chief executive, said: "These deals are further evidence of our strategy to extend our business into emerging markets. The Indian beverage market has strong growth characteristics, while Truepack, a well invested pharma-focused company with a good client base, gives us a foothold in India´s fast growing pharmaceutical packaging market."

In the first six months of 2006, Rexam reported operating profits increased by 1% to GBP 194m, of which GBP 43m came from its plastic packaging business, up from GBP 32m in the first half of 2005. Group sales in the period increased 20% to GBP 1.8 bn of which GBP 379m (H1 2005: GBP 250m) was in plastic packaging.