23rd May 2005 10:30
Rexam PLC23 May 2005 Rexam sells UK glass business Rexam, the global consumer packaging group and the world's No 1 beverage canmaker, announces that it has sold its glass business in Barnsley, UK, to ArdaghGlass for a cash consideration of £50m. The proceeds will be used to pay downborrowings. In 2004, the Barnsley business, which employs 700 people, had an operatingprofit of £3m on sales of £101m. As at 31 December 2004, it had net operatingassets of £59m. Commenting on the sale, Lars Emilson, Chief Executive, said: "The UK glassmarket is facing a difficult outlook and new capacity coming on stream will onlyexacerbate the situation. After reviewing our options, we felt that, as thenumber three player in the UK glass industry, divestment in this case was thebest course of action. Rexam remains firmly committed to its glass customersand the glass container business. We continue to focus on further developing ourglass business in northern continental Europe, where we have a solid marketposition, and in the fast growing markets of eastern Europe." 23 May 2005 Enquiries Lars Emilson, Chief Executive +44 20 7227 4100Graham Chipchase, Group Finance DirectorAndrew Mills, Group Communications Director Financial DynamicsRichard Mountain +44 20 7269 7291 Rexam is one of the world's top five consumer packaging companies and theworld's leading beverage can maker. Its global operations focus on beveragepackaging in metal, glass and plastic, as well as plastic packaging solutionsfor the beauty, pharmaceutical and food industries. The Group employs around22,000 people in 22 countries worldwide and has an ongoing turnover ofapproximately £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 website at www.rexam.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
REX.L