Rexam to sell healthcare group to private equity firm

Hamish Champ
PRW

Published: February 3, 2014 8:24 am ET
Updated: February 3, 2014 2:38 pm ET

Related to this story

Topics Mergers & Acquisitions, Medical, Injection Molding
Companies & Associations Rexam PLC

Rexam plc, the British-headquartered packaging giant, has announced the proposed sale of the pharmaceutical devices and prescription retail packaging operations of its healthcare division to a private equity firm for around $805 million.

The group said the deal, signed with Montagu Private Equity, was expected to be completed by around the middle of this year. It will be the second time Montagu has owned elements of the unit.

Montagu owned Risdon Pharma, which it sold to Rexam in 2003.

Rexam, which wants to focus on its cans business, had been looking for a buyer for its healthcare arm for some time, with a number of potential buyers coming into – and then out of – the frame last year.

The two operations being sold to Montagu, which owns a range of businesses including Biffa and Cory Environmental and previously owned packaging outfit Linpac, had sales of some 250 million pounds ($408 million) in 2012 and underlying profits of 43 million pounds ($70.2 million) before central overheads.

Montagu has also had ownership in medical and healthcare companies BSN Medical, Euromedic International and Sebia Inc.

Rexam added that it was "in discussions" regarding the sale of the remaining third of its healthcare operation, its closures and containers operation.

Rexam shareholders will get around 450 m by way of redeemable shares and a share consolidation, the group said.

Graham Chipchase, Rexam's chief executive, said the sale of the healthcare business was part of the group's long term strategy to maximise shareholder value.

"The divisions represent the majority of the value of our healthcare business. Following the sale of healthcare, we will be a focused beverage cans business with a strong financial position.

"Our strategy is to balance growth and returns and we will continue to pursue selective investment opportunities in beverage cans in higher growth markets."

Rexam's Healthcare Devices, headquartered in La Verpillière, France, is a leading European manufacturer of plastic drug administration systems for the pharmaceutical industry. It designs, produces and sells a broad range of complex medical devices including inhalers, insulin pens and pumps. Its products are critical to patients and subject to stringent quality requirements.

During the last decade, Montagu officials noted in a news release, Healthcare Devices has developed rapidly, on the back of acquisitions, continued focus on R&D, innovation and manufacturing excellence.

Healthcare Devices operates four state of the art manufacturing plants in the U.S. and Europe and generates annual sales of approximately $265 million.

Based in Berlin, Ohio, Prescription Retail provides plastic vials and closures used by pharmacies in the US to deliver the exact count of pills to patients. It manufactures more than 1.5 billion vials annually and owns markets leading products such as "1-Clic" and "Screw-Loc."

Marc Haemel, current Head of Rexam Healthcare, commented:

"We are very happy to be partnering with the Montagu team. Their previous experience as owners of Risdon Pharma demonstrates the quality of their support as the company looks to sustain its growth through further investments in new technologies and state of the art production."

Completion of the transaction is subject to consultation with the French Works Councils and satisfactory clearance from competition authorities.


Comments

Rexam to sell healthcare group to private equity firm

Hamish Champ
PRW

Published: February 3, 2014 8:24 am ET
Updated: February 3, 2014 2:38 pm ET

Post Your Comments


Back to story


More stories

Image

Newell Rubbermaid to acquire Contigo brand

July 21, 2014 5:00 pm ET

Consumer products company Newell Rubbermaid Inc. has signed an agreement to acquire Ignite Holdings LLC, owner of the Contigo and Avex brands of...    More

Image

Illinois injection molder expands

July 21, 2014 1:23 pm ET

Automotive supplier All-Rite Industries Inc. has added two new injection molding machines to its operations.    More

Image

Huhtamäki to evaluate its films business

July 21, 2014 9:52 am ET

Finland-based plastics packaging group, Huhtamäki Oyj, has announced that it is evaluating its options regarding its films business, due to its...    More

Image

Thermoforming Technology Group adds Lyle Industries to its portfolio

July 18, 2014 2:48 pm ET

Thermoforming Technology Group LLC has expanded its thermoforming equipment presence with the acquisition of Lyle Industries Inc.    More

Image

Infiltrator goes very large scale for injection press

July 18, 2014 1:45 pm ET

Infiltrator Systems Inc. has designed and built a mammoth injection press, with 6,000 tons of clamping force, to mold septic tank halves measuring 15 ...    More

Market Reports

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Plastics Recycling Market Review & Outlook 2014

This special report from Plastics News examines the North American plastics recycling industry and provides insight into indicators that impact market viability, including Resin pricing trends for virgin and recycled market material and historical Resin production trends for post- consumer and industrial waste.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events