6th Sep 2005 07:00
Rexam PLC06 September 2005 Rexam expands in Plastic Packaging with £83m US acquisition Rexam, the global consumer packaging group and the world's leading beverage canmaker, is pleased to announce that it has agreed to acquire US-based DeltaPlastics Inc for a total cash consideration of $154m (£83m), includingrepayments of borrowings and redemption of preference shares. The majorityshareholder is Stonebridge Partners, a private equity fund. The acquisition, which is subject to US competition authority approval, isexpected to be earnings enhancing from the outset and to cover Rexam's cost ofcapital in 2007. Delta Plastics is based in Hot Springs, Arkansas. It designs and manufacturesplastic injection-moulded jars and closures for a variety of applications,primarily for the personal care and food markets. The company holds a number ofpatented product designs. The operation, which employs more than 350 people, comprises two moderninjection-moulding facilities in Hot Springs. It also has a technology centre,located near Los Angeles, California, which designs, develops and manufacturesDelta Plastics' own moulds and automation equipment. A combination of technology leadership, quality products and excellent customerservice has enabled Delta Plastics to grow at a rate well above the marketduring the past five years. In 2004 it reported sales of $50m and, as at 31December, net operating assets of $49m. Commenting on the acquisition, Lars Emilson, Rexam's Chief Executive, said: "Delta Plastics is a well run operation that has posted impressive growth ratesin recent years. The acquisition is perfectly in line with our strategy to growour Plastic Packaging business and enhance our current product offering. It willincrease our presence in the important US market and we foresee a number ofsynergies in areas such as raw materials purchasing, technology access andadditional sales." 6 September 2005 Rexam PLC 020 7227 4100Lars Emilson, Chief ExecutiveGraham Chipchase, Group Finance Director/Group Director Plastic PackagingAndrew Mills, Group Communications Director Financial Dynamics 020 7269 7291Richard Mountain Rexam is one of the world's top five consumer packaging groups and the world'sleading beverage can maker. Its global operations focus on beverage packaging inmetal, glass and plastic, as well as plastic packaging solutions for the beauty,pharmaceutical and food industries around the world. The Rexam Group employssome 22,000 people in around 22 countries worldwide and has an ongoing turnoverof approximately £3.1 billion. Rexam is a member of the FTSE 100. Its ordinaryshares are listed with the UK Listing Authority and trade on the market forlisted securities on the London Stock Exchange under the symbol REX. For furtherinformation, 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