Rexam is to sell its ‘Healthcare Flexibles’ division to Amcor, the Australian-based packaging company, for £135m.
Rexam Healthcare Flexibles manufactures a range of packaging for healthcare markets including sterilisable packaging, barrier packaging and barrier films for tubes. It employs just over 1,000 people at 10 factories world-wide.
In 2002, it had an operating profit of £11m on sales of £163m, and on 31 December 2002 had net operating assets of £73m.
The sale proceeds will be used by Rexam to further reduce its borrowings.
Amcor also said that it had purchased a 28.1% minority stake in Amcor Flexibles Europe from Danisco and Ahlstrom. Amcor Flexibles Europe was established in April 2001 as a result of the merger of Amcor Ltd., AB Akerlund & Rausing and Danisco Flexible.
The deals are subject to regulatory approval.