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