Plastic consumer packaging maker Berry Plastics Group Inc. has agreed to buy the containers and closures division of Rexam plc’s healthcare operation for US$135 million in cash.
The Healthcare Containers and Closures business produces bottles, closures and specialty products for pharmaceutical and over-the-counter applications. The transaction includes eight manufacturing locations – five in the United States and one each in Mexico, France, and India, with total employment of approximately 1,500 and 2013 sales of US$262 million.
“The proposed acquisition of the Rexam Healthcare Containers and Closures business is directly aligned with our fundamental strategic initiatives,” said Jon Rich, chairman and CEO of Evansville, Ind.-based Berry Plastics. “The U.S. portion of the business has a highly synergistic fit with our current healthcare product portfolio, while the facilities located outside the United States will allow us to increase our presence in the attractive global healthcare market segment.”
London-based Rexam has been selling plastics units to focus on its can operations. Last month, the company announced the proposed sale of the pharmaceutical devices and prescription retail packaging operations of its healthcare division to Montagu Private Equity for US$805 million.