world''s biggest beverage can maker, UK-based Rexam, which
makes cans for some big-name beverage companies, has bought
the plastic packaging business of US group Owen-Illinois
(O-I) for $1.8 billion (approximately Rs7,342 crore),
including a tax basis step-up of an estimated net present
value of $260 million, making the effective cost of the
acquisition $1,565 million.
is one of the world''s top five consumer packaging groups
and the world''s leading beverage can maker. It serves
the beverage, beauty, pharmaceuticals and food markets
with around 100 manufacturing operations in over 20 countries.
plastic unit has its headquarters in Ohio and operates
19 manufacturing plants, mainly in the US and Puerto Rico.
which supplies Coca-Cola, and Absolut Vodka, says the
acquisition will be an excellent fit in terms of customers,
technologies, innovation, end use applications and geography.
It said the deal would allow it to expand its presence
in the plastics market, and specifically in the healthcare
sector dominated by O-I.
Friday Rexam, while confirming it was in talks with OI,
had said that it would use £448 million it raised
from the sale of its glass unit in March and floating
float 58 million extra shares to help pay for the deal.
Van de Walle, Rexam''s CEO said: "The acquisition
of O-I Plastics will transform our plastic packaging business
and is consistent with our strategy to expand our positions
in growth markets. It gives us meaningful scale in plastics,
leading market positions in core growth markets and is
anticipated to create significant value through synergies
and cross-selling opportunities.
the successful reinvestment of the proceeds from the sale
of Glass, Rexam, with its leading positions in Beverage
Cans and Plastic Packaging, will have two significant
and strategically well positioned global businesses with
good growth prospects."