Global packaging specialist Rexam (London / UK; www.rexam.com) has said in an interim management statement that the sale of its personal care business – see Plasteurope.com of 05.07.2012 – is now in its final stages. Once the divestiture is completed, the only plastics packaging business in its portfolio will be its healthcare operation, which, the statement says, is performing below expectations.

The company announced the sale of its personal care business, to be sold in two parts for USD 709m, in July 2012. The divestment of the high barrier food packaging business was completed on 31 August 2012 – see Plasteurope.com of 04.09.2012. Rexam has now received regulatory approval from the US, Europe and Brazil to complete the sale of the cosmetics, toiletries and household care business and is awaiting approval from the Chinese authorities. Although the timing of this final clearance is not certain, the company is targeting completion by the end of this year.

Rexam’s net debt at 30 September 2012 was GBP 1.2 bn; lower than three months previously due primarily to the USD 250m of proceeds from the sale of high barrier food. Rexam chief executive Graham Chipchase said: “Despite a challenging trading environment, the group’s overall performance is broadly in line with our expectations. The divestment of personal care is in its final stages and we are on track to return GBP 370m of the proceeds to shareholders. We continue to focus on generating cash, managing costs and improving return on capital employed, and our progress to date gives us confidence in achieving our 15% return on capital employed target by the end of 2013.”