Rexam starts selling $1 bn healthcare packaging unit

Rexam Plc, the world's largest beverage can maker, has kicked off the process of selling its healthcare packaging unit valued at around £650 million ($1 billion), Reuters yesterday reported, citing four banking sources.

Rexam, which operates in India through a joint venture Hindustan Tin Works Ltd, had said in June that it would sell its healthcare business in order to maximise shareholder value and focus on its core beverage cans business.

Rexam has sent teasers to prospective buyers and potential bidders include large private equity firms and strategic players like Germany's Gerresheimer and US-based Berry Plastics, the report said.

In 2011, Berry Plastics had acquired Rexam's lid-making operations for £222 million ($360 million).

Private equity firms who would be interested include Cinven, BC Partners, Bain Capital, Carlyle Group, Permira and One Equity Partners.

Rexam healthcare provides drug delivery systems, containers & closures and prescription retail packaging to the pharmaceutical and healthcare industries.

It supplies over a billion customised and standard products globally every year from its network of 14 factories across three continents.

With expertise in plastic injection, injection blow moulding and high speed automated assembly, the London-based company designs, develops and manufactures innovative packaging, including containers and closures, drug delivery devices, metering pumps and valves and medical components.

Its international and emerging markets business unit provides drug delivery devices and primary packaging solutions, while its US-based mold manufacturing unit provides solutions for precision injection mold needs.