Disposal

3 February 2014

Rexam announces proposed sale of the Pharmaceutical Devices and Prescription Retail Packaging divisions of its Healthcare business and a return of cash to shareholders of around £450m

Rexam PLC, a leading global beverage can maker, announces the proposed sale of the Pharmaceutical Devices and Prescription Retail Packaging divisions of its Healthcare business for $805m in cash.

The Healthcare business has three divisions: Pharmaceutical Devices, Prescription Retail Packaging and Closures & Containers. Rexam is in discussions regarding the sale of Closures & Containers and will provide an update in due course.

Montagu Private Equity has made a binding offer for the Pharmaceutical Devices and Prescription Retail Packaging divisions for a total of $805m in cash. The transaction is subject to consultation with various European works councils and is conditional on the necessary regulatory approvals and subject to certain adjustments at completion. The transaction is expected to complete around the middle of this year.

In 2012, Pharmaceutical Devices and Prescription Retail Packaging employed some 1,500 people and had sales of c.£250m and underlying operating profit of c.£43m before central overheads. As at 31 December 2012, it had gross assets of c.£538m. Pharmaceutical Devices and Prescription Retail Packaging accounts for c.85% of total Healthcare EBITDA.

Following completion of the sale of Pharmaceutical Devices and Prescription Retail Packaging, Rexam plans to return to shareholders around £450m, which, it is anticipated, will be effected by way of a redeemable B share scheme together with a share consolidation.

Graham Chipchase, Rexam's Chief Executive said: "The sale of the Healthcare business is part of our long term strategy to maximise shareholder value. The Pharmaceutical Devices and Prescription Retail Packaging divisions represent the majority of the value of our Healthcare business. Following the sale of Healthcare, we will be a focused beverage cans business with a strong financial position. Our strategy is to balance growth and returns and we will continue to pursue selective investment opportunities in beverage cans in higher growth markets."

Enquiries

Investors

Sandra Moura, Head of Investor Relations, Rexam +44 20 7227 4100

Media

Jonathan Thornton, Head of Communications, Rexam +44 20 7227 4100

Katharine Wynne, Tulchan Communications +44 20 7353 4200

Martin Robinson, Tulchan Communications +44 20 7353 4200

Barclays advised Rexam on the transaction.

Editors' notes:

Rexam is a global consumer packaging company. We are one of the leading global beverage can makers and a major global player in rigid plastic packaging for healthcare applications. We are business partners to some of the world's most famous and successful consumer brands. Our vision is to be the best global consumer packaging company.We have 67 manufacturing plants in 24 countries and employ around 11,000 people. Our sales from continuing operations in 2012 were in the region of £4.3 billion.Rexam is a member of the FTSE 100 and its ordinary shares are listed with the UK Listing Authority