REXAM
Closures business bought by Berry Plastics for GBP 360m / Restructuring of plastics operations continues
Global consumer packaging company Rexam (London / UK; www.rexam.com) has agreed to sell its beverage and speciality closures business to Berry Plastics (Evansville, Indiana / USA; www.berryplastics.com) for GBP 360m (EUR 410m) in cash. Completion is expected in the third quarter of 2011.
The closures business employs around 1,500 people and is focused on the North American market. In 2010 it was reported as discontinued with sales of GBP 343m and underlying operating profit of GBP 22m. At the end of 2010 it had gross assets of GBP 280m and liabilities of GBP 50m. The company put the business up for sale early in 2011 – see Plasteurope.com of 28.02.2011.
The deal is part of Rexam’s continuing restructuring of its plastic packaging operations. The transaction is expected to lead to an exceptional charge of around GBP 25m, of which GBP 15m will be cash costs. Rexam said the proceeds of the sale will be used to reduce net debt.
The closures business employs around 1,500 people and is focused on the North American market. In 2010 it was reported as discontinued with sales of GBP 343m and underlying operating profit of GBP 22m. At the end of 2010 it had gross assets of GBP 280m and liabilities of GBP 50m. The company put the business up for sale early in 2011 – see Plasteurope.com of 28.02.2011.
The deal is part of Rexam’s continuing restructuring of its plastic packaging operations. The transaction is expected to lead to an exceptional charge of around GBP 25m, of which GBP 15m will be cash costs. Rexam said the proceeds of the sale will be used to reduce net debt.
21.06.2011 Plasteurope.com [219664-0]
Published on 21.06.2011
German version of this article...