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Report says bidders lining up for Rexam healthcare arm

By: PLASTICS & RUBBER WEEKLY

August 14, 2013

London-based packaging giant Rexam plc, is said to be attracting interest for its healthcare business from trade rivals and private equity groups.

Sources told the Reuters news agency that the division, which Rexam announced in June was up for sale, could go for around 650 million pounds ($1 billion).

Reuters reported that the sources said companies including Germany's Gerresheimer and Berry Plastics, based in the United States, could be interested.

Additionally, private equity firms such as Cinven, Carlyle, Permira and Bain Capital could be in the frame to do a deal.

Rexam chief executive Graham Chipchase told analysts earlier this month that the healthcare arm, which recently reported 23 million pounds of half year underlying pre-tax profit on sales of 224 million pounds, was attracting lots of interest, but that due to anti-trust issues and an expected works council process any sale was unlikely to happen until next early next year.

Last summer Rexam sold its personal care packaging business.