Rexam is to acquire all the shares in Precise Technology, a US-based manufacturer of plastic packaging, from the private equity group Code Hennessy & Simmons for $257.5m (£147m) cash including debt to be repaid.
Precise Technology, which employs approximately 1,700 people, serves the healthcare, personal care, and food and beverage markets providing a variety of injection-moulded plastic packaging solutions, mostly on a customised basis.
These include pharmaceutical and medical components and devices, dispensing closures, containers and other consumer packaging. Its customers, many of whom are already served by Rexam, include household names in healthcare and personal care as well as leading global beverage brands.
Headquartered in Pittsburgh, US, Precise Technology currently comprises 15 plants in the US, including two tool manufacturing facilities, a plant in the Netherlands and one in the final stages of construction in Poland.
The acquisition is subject to certain conditions and regulatory authority approvals and it is anticipated that it will complete before the end of 2005.