22nd Feb 2006 07:02
Rexam PLC22 February 2006 Rexam extends global position in plastic packaging Rexam, the global consumer packaging group and the world's leading beverage cansupplier, announces that it intends to launch a public offer to acquire AirsprayNV ("Airspray"), the world leader in the manufacture of foam pumps, listed onEuronext, Amsterdam. The intended offer for Airspray will be made by Rexam Plastics Nederland BV, asubsidiary of Rexam. The value of the intended offer is €146m based on theoffer price of €26.75 per share, which represents a premium of 17% relative tothe closing price of €22.85 per share on 21 February 2006, the last day oftrading for Airspray shares prior to this announcement. The intended offer priceexcludes Airsprays's proposed final dividend of €0.75 per share for thefinancial year 2005. When launched, the offer will be fully recommended by the Boards of Airspray. Itis expected that the offer memorandum will be published in April 2006, subjectto satisfaction of certain conditions including regulatory clearance. Thetransaction is expected to close during the second half of May 2006. The transaction is expected to be earnings enhancing for Rexam from the outsetand will be financed in cash from existing borrowing facilities. In 2005, Airspray had sales of €46m, operating profits of €8.9m. As at 31December 2005, it had net operating assets of €34m and virtually no netborrowings. In the five years to the end of 2005, Airspray reported revenuegrowth and operating profit growth at average annual compound rates of 16% and11% respectively. Foam pumps, which are dispensers that transform liquid into foam at the point ofdispensing, account for the vast majority of Airspray's sales. The global marketfor foam pumps has grown at an average annual compound growth rate in excess of20% over the last five years. The main applications for these pumps are inbeauty and personal care packaging, including hair care, skin care, sun care andliquid soaps, together with household products such as dish detergent. Keycustomers include Procter & Gamble, The Dial Corporation and Bath and BodyworksInc. Airspray has two manufacturing sites, one in the Netherlands and one in the US.In all, it employs around 140 people. more... Lars Emilson, Rexam's Chief Executive, commented: "Airspray is an innovative,high growth business based on patented technologies and know-how. Theacquisition is a further step in the expansion of our Plastic Packagingoperations and will broaden our dispensing systems product offering globally. Wealso see substantial synergies in marketing, purchasing and manufacturing, withlonger term potential to develop new pump products and ranges." 22 February 2006 EnquiriesLars Emilson, Chief Executive +44 20 7227 4100David Robbie, Finance DirectorAndrew Mills, Group Communications Director Financial DynamicsRichard Mountain +44 20 7269 7291 Editors' notes: Rexam is a leading global consumer packaging company and the largest beveragecan maker in the world. Our vision is to be the leading global consumerpackaging company. We are business partners to many of the world's most famousand successful consumer brands as well as young, entrepreneurial start-ups. Weoffer a broad range of packaging services and solutions for differentindustries, using different materials and technologies. We have some 22,000people in more than 20 countries. Three things characterise us - leadership inour industry, our commitment to innovation and our passion to deliverexceptional value. Rexam has an ongoing turnover of approximately £3.2 billionand is a member of the FTSE 100. Rexam's ordinary shares are listed with the UKListing Authority and trade on the London Stock Exchange under the symbol REX.For further information, visit Rexam's web site at www.rexam.com. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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