Rexam plc is pulling out of flexible packaging with an agreement to sell its health-care flexibles business to Australian packaging giant Amcor Ltd. for £135 million ($215 million).
The deal includes 10 plants on four continents, including four plants in the United States. The U.S. plants are in Mundelein, Ill.; Madison, Wis.; Mount Holly, N.J.; and Ashland, Mass. Previously, Amcor had only six flexible plants, all in Europe.
``The four plants in the U.S. will considerably increase Amcor's presence in that country and give us a solid base in a high-value business segment from which to build,'' commented Melbourne-based Amcor's managing director, Russell Jones. The company expects to close the deal in early October.
Meanwhile, Amcor is buying out the 28.1 percent minority stake in Amcor Flexibles Europe formerly held by Danisco Flexible A/S and Ahlstrom Corp., for almost 100 million euros ($109 million).
When the deals are complete, Amcor will produce a wide range of medical films and laminates as well as converted bags and pouches, with sales of A$535 million (US$352 million).
Rexam employs more than 1,000 at its plants producing blister films and barrier films.