25th Jan 2006 07:02
Rexam PLC25 January 2006 Rexam to acquire Chinese beauty packaging company Rexam, the global consumer packaging group and the world's leading beverage canmaker, is pleased to announce that it has agreed to acquire FangXin Limited'sbeauty packaging business (FangXin) based in China for a cash consideration ofUS$74m (£42m) including borrowings assumed. The acquisition is expected to be earnings enhancing from the outset. Thetransaction is expected to complete within the first quarter of 2006. FangXin manufactures lipstick cases, compacts and pumps as well as mascaracases. In the last four years, its sales have grown at a compound growth rate ofabout 30% per annum. Since 2003, FangXin has invested heavily in new facilitiesand has the capacity to further increase sales. In 2005, it is estimated thatFangXin broke even on sales of US$33m (£19m) and, at year end, had net operatingassets of US$69m (£39m). Rexam has had a presence in China since 1998, where, following the acquisition,it will have nine Plastic Packaging plants serving the beauty industry and onebeverage can plant. Commenting on the acquisition, Lars Emilson, Rexam's Chief Executive said: "Thisis a further step in the execution of our strategy to expand in plasticpackaging. The Chinese beauty packaging industry is becoming increasinglyimportant globally. The acquisition of this well invested company broadens ourproduct range and provides us with new capabilities that will further improveour customer offering."' 25 January, 2006 Rexam PLC 020 7227 4100 Lars Emilson, Chief ExecutiveDavid Robbie, Finance DirectorAndrew Mills, Group Communications Director Financial Dynamics 020 7269 7291 Richard Mountain 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 some 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 23,000 people in22 countries. Three things characterise us - leadership in our industry, ourcommitment to innovation and our passion to deliver exceptional value. Rexam hasan ongoing turnover of approximately £3.1 billion and is a member of the FTSE100. Its ordinary shares are listed with the UK Listing Authority and trade onthe market for listed securities on the London Stock Exchange under the symbolREX. 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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