Rexam plc will boost its pharmaceutical packaging base in Europe by acquiring Cie. Plastic Omnium's plastic medical products business for 32.5 million euros ($39.3 million).
Plastic Omnium Medical, which designs and injection molds components and complete systems, has one plant in La Verpilliere, France, where it employs 171. Products include diagnostic disposables, drug delivery devices and inhalers.
The firm is one of the five largest in Europe in the injection molded pharmaceutical packaging market, according to Paris-based Plastic Omnium, which said in a news release that it will use the cash to strengthen its core automotive equipment and environmental product businesses.
Rexam claims the No. 2 position in molded pharmaceutical packaging in Europe.
Plastic Omnium Medical is a main supplier of a multidose dry-powder inhaler to pharmaceutical giant GlaxoSmithKline, a product also supplied by London- based Rexam.
Last year, the Plastic Omnium subsidiary recorded a profit of 5.4 million euros ($6.5 million) on sales of 26 million euros ($32 million), not including tooling.
Last year, Rexam sold its 10 health-care flexible packaging operations to Australian flexibles giant Amcor Ltd. for $215 million.