25th Oct 2006 09:00
Rexam PLC25 October 2006 Rexam divestments in European Food and Beverage Plastics businesses Rexam, the global consumer packaging company and the world's leading beveragecan maker, announces that it has divested its Food Plastics operations in Yatein the UK, Lidkoping in Sweden and Stilling in Denmark, for a totalconsideration of £25m including debt assumed. The businesses had combined salesof £67m in 2005 and net assets of £27m, including capitalised goodwill. Theproceeds will be used to pay down borrowings. Going forward, Rexam will focus its Food Plastics operation on developing aglobal business in the higher margin, faster growing market for high-barriercontainers. Rexam has pioneered this type of product in the US and has more thanhalf of the US market for them. Rexam's operation at Deeside in the UK will bedeveloped to service European customers' growing demand for these containers. Rexam also announces that it has started the process to sell its refillable PETbottle operation, Rexam Petainer, which is based in Sweden and the CzechRepublic. It is a regional business focused on the Scandinavian and Germanmarkets. It has a minor position in the overall plastic bottle market and thecompany believes that it would be better to focus resources on segments thatmore closely fit its global strategy. In 2005, the business delivered sales of£34m. 25 October 2006Enquiries Lars Emilson, Chief Executive +44 20 7227 4100David Robbie, Group Finance Director Financial DynamicsRichard Mountain +44 20 7269 7121 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 many 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 some 25,500people in more than 20 countries. Three things characterise us - leadership inour industry, our commitment to innovation and our passion to deliverexceptional value. Rexam has an ongoing turnover of approximately £3.4 billionand is a member of the FTSE 100. Rexam's ordinary shares are listed with the UKListing Authority and trade on the London Stock Exchange under the symbol REX.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