12th Mar 2007 07:02
Rexam PLC12 March 2007 Rexam to sell its glass business for €660m (£449m) Rexam, the global consumer packaging company and the world's leading beveragecan maker, announces that it has reached agreement with Ardagh Glass Group plcto divest its entire glass business for a cash consideration of €660m (£449m)including borrowings and other liabilities disposed and subject to certain netasset adjustments. The transaction is conditional on competition authorityapprovals in Germany and Poland. In 2006, Rexam Glass, which employs 3,600 people and focuses on the northEuropean market, reported sales of £437m and operating profit of £40m beforeallocation of central costs amounting to £4m. Following the disposal, thecentral costs will be reapportioned to Rexam's other business segments. As at 31December 2006, Rexam Glass had net operating assets of £372m including goodwill. The sale follows a review of the position of the glass business within Rexam'sconsumer packaging portfolio and is consistent with Rexam's strategy to focusinvestment on organic growth and acquisitions in higher growth and emergingmarkets. In the short term the proceeds will be used to reduce borrowings. Commenting on the sale, Leslie Van de Walle, Rexam's CEO, said: "Rexam Glass isa strong, well run operation and will fit well with Ardagh, a dedicated playerin glass. Rexam's strategy remains to focus on profitable growth in its coreBeverage Can and Plastic Packaging businesses. We have a strong track record ofachieving high rates of return on our investments and the proceeds from thissale provide the financial flexibility to generate attractive long term returnsfor our shareholders." 12 March 2007 EnquiriesLeslie Van de Walle, Chief Executive Officer +44 20 7227 4100David Robbie, Finance DirectorFinancial Dynamics Richard Mountain +44 20 7269 7186 Credit Suisse advised Rexam on the sale. 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. We have some 24,200 people in more than 20 countries. Three thingscharacterise us - leadership in our industry, our commitment to innovation andour passion to deliver exceptional value. Rexam has an ongoing turnover ofapproximately £3.6 billion and is a member of the FTSE 100. Rexam's ordinaryshares are listed with the UK Listing Authority and trade on the London StockExchange under the symbol REX. For further information, visit Rexam's web siteat www.rexam.com. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
REX.L