3rd Feb 2014 08:02
LONDON (Alliance News) - Packaging company Rexam PLC Monday said it will return about GBP450 million to shareholders once it receives the USD805 million cash proceeds from the proposed sale of most of its healthcare packaging unit, a move that will leave it focused on drinks cans.
In a statement, the beverage can maker said it is planning to sell its pharmaceutical devices and prescription retail packaging units of its healthcare business to Montagu Private Equity. It expects the deal to complete in about the middle of this year.
The units being sold represent most of the company's healthcare packaging unit. The operations had sales of about GBP250 million in 2012 and underlying operating profits of about GBP43 million. They employed about 1,500 people.
Rexam said it will return cash to its shareholders through a redeemable B share scheme and a share consolidation.
"The sale of the Healthcare business is part of our long term strategy to maximise shareholder value. The Pharmaceutical Devices and Prescription Retail Packaging divisions represent the majority of the value of our Healthcare business," Rexam Chief Executive Graham Chipcase said in a statement.
"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," he added.
By Steve McGrath; [email protected]; @SteveMcGrath1
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