14th Nov 2005 07:02
Rexam PLC14 November 2005 Rexam strengthens position in Plastic Packagingwith $257.5m US 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 PreciseTechnology Inc, a US-based manufacturer of plastic packaging, from the privateequity group Code Hennessy & Simmons LLC for a cash consideration of $257.5m(£147m) including debt to be repaid. The acquisition is subject to certain conditions and regulatory authorityapprovals and it is anticipated that it will complete before the end of 2005. Itwill be earnings enhancing from the outset and is expected to meet Rexam's costof capital from 2007. Precise Technology, which employs approximately 1,700 people, serves thehealthcare, personal care, and food and beverage markets providing a widevariety of injection-moulded plastic packaging solutions, mostly on a customisedbasis. These include pharmaceutical and medical components and devices,dispensing closures, containers and other consumer packaging. Its customers,many of whom are already served by Rexam, include household names in healthcareand personal care as well as leading global beverage brands. Headquartered in Pittsburgh, US, Precise Technology currently comprises15 plantsin the US, including two tool manufacturing facilities, a plant in theNetherlands and one in the final stages of construction in Poland. For the financial year 2004, Precise Technology's results on a US GAAP basiswere as follows: Sales $294mEBITA* $21.7mNet Assets** $94m * Earnings before interest, tax, and amortisation, adjusted fornon-recurring items. ** Excludes net debt, goodwill and other intangible assets. Gross assetsincluding cash, goodwill and other intangible assets were $306m. more... Lars Emilson, Rexam's Chief Executive, said: "This is a very excitingacquisition and is a further step in our strategy to expand in PlasticPackaging. Precise Technology provides an excellent entry for Rexam into thegrowing North American pharmaceutical and healthcare packaging market and willalso extend our capability for existing customers in this sector whom we havebeen supplying mainly in Europe up until now. The company's proprietarytechnology in dispensing closures complements our existing closures business,while its Personal Care and Consumer Products business gives us the opportunityto strengthen our overall packaging offering. In addition to the new salesopportunities expected from broadening our customer relationships, we expectfurther synergies in materials purchasing and from in-house tooling manufacture." 14 November 2005 Rexam PLC 020 7227 4100Lars Emilson, Chief ExecutiveDavid Robbie, Finance DirectorAndrew Mills, Group Communications Director Financial Dynamics 020 7269 7291Richard Mountain 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 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 21,000 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