30th Jan 2006 07:01
Rexam PLC30 January 2006 Rexam enters growth beverage can market with £61m Egyptian acquisition Rexam, the global consumer packaging company and the world's leading beveragecan maker, announces that it has agreed to acquire all the shares in Ecanco, theEgypt-based beverage can maker, from a group of private shareholders for a cashconsideration of US$107m (£61m) including borrowings assumed. The acquisition, which is subject to the approval of the Cairo and AlexandriaStock Exchange, will be earnings enhancing from the outset and is expected tomeet Rexam's cost of capital from 2007. It is anticipated that the transactionwill complete shortly. Ecanco is the sole beverage can maker in Egypt. Its plant, located just outsideCairo, comprises a single line for steel beverage cans. Most of its cans aresold locally, with the balance exported to North Africa and the Middle East. Thecompany's major customers are Pepsi and Coca-Cola. For the financial year 2005, it is estimated that Ecanco had sales of US$41m(£23m) and, at 31 December 2005, net operating assets of US$27m (£15m). Lars Emilson, Rexam's Chief Executive, said: "Our strong presence in countriessuch as Brazil, China, Russia and now Egypt, means that emerging markets accountfor around 20% of our turnover. Ecanco gives us a leading position in Egypt andNorth Africa and provides a base to develop these as well as other growingmarkets in the Middle East. We also see potential for increasing efficienciesand for synergies in the supply chain." 30 January 2006 Rexam PLC 020 7227 4100Lars Emilson, Chief ExecutiveDavid Robbie, Finance DirectorAndrew Mills, Group Communications Director Financial Dynamics 020 7269 7291Richard 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:
REX.L