Rexam expands into Saudi Arabia
Beverage cans maker Rexam yesterday said it bought a 51 per cent stake in Saudi Arabia’s United Arab Can Manufacturing, a supplier to The Coca-Cola Co, for $122m (£73.4m) as part of its strategy to expand in emerging markets. Rexam, which makes cans for Coca-Cola, PepsiCo and Heineken, said UAC’s plant in Dammam, Saudi Arabia, has an annual capacity of 1.8bn cans. UAC had earnings before interest, taxes, depreciation and amortisation of about $29m in 2012, Rexam said. The deal is expected to close in the third quarter of 2014.