Rexam sells healthcare units for £1bn
REXAM’S shares rose around 1.4 per cent yesterday, after the manufacturer confirmed the sale of two healthcare units for £492m, leaving it free to focus on its core drinks can business.
The FTSE 100-quoted firm has sold the pharmaceutical devices and prescription retail packaging divisions of its healthcare business to Montagu Private Equity and plans to return around £450m to shareholders.
Rexam said it is in talks to sell the third division of its healthcare business, closures and containers – which makes bottles for over-the-counter drugs – and will provide an update in due course. The transaction is subject to regulatory approvals and is due to complete mid-year.
“The pharmaceutical devices and prescription retail packaging divisions represent the majority of the value of our healthcare business,” said chief executive Graham Chipchase.
The pharmaceutical devices and prescription retail packaging divisions reported sales of £250m in 2012 and underlying operating profit of £43m.
Last July, Rexam sold off its personal care business for $709m in two parts, to private equity firm Sun Capital Partners and US manufacturer Silgan Holdings. Shares closed up 1.42 per cent at 500.00p.