Rexam buys plastic packaging

Rexam has reached an agreement with Montagu Private Equity and other shareholders to acquire all the shares of Risdon Pharma Development for 125 million Euros.

Rexam PLC, the consumer packaging company, has reached an agreement with Montagu Private Equity and other shareholders to acquire all the shares of Risdon Pharma Development SA (Risdon Pharma), a plastic pharmaceutical packaging business for 125 million Euros (£89 million) in cash subject to net asset and other adjustments.

The acquisition, which is subject to regulatory approval, will be financed from existing debt facilities, and is expected to more than cover its cost of capital in the first full year of ownership.

Risdon Pharma, which was formerly owned by Crown Cork & Seal, is involved in various segments of the pharmaceutical packaging market from traditional products, such as eye droppers and nasal sprays, to medical devices including multidose dry powder inhalers for dispensing asthma drugs.

Risdon Pharma has approximately 300 employees based at its factories in Offranville, France, and Neuenburg, Germany.

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