Berry Plastics has also made a binding offer to purchase the French portion of Rexam’s C&C business, which Rexam may accept after completion of the required consultation process with the works council in France.
Upon completion of both transactions, Berry Plastics would pay approximately $135 million for the entire Healthcare Containers and Closures business unit, with the closing expected to take place in the second quarter of 2014. The company expects the acquisition, which will be funded from existing liquidity, to be deleveraging after achieving synergies.
The Healthcare Containers and Closures business produces bottles, closures and specialty products for pharmaceutical and OTC (over-the-counter) applications. The transaction includes eight manufacturing locations – five in the United States and one each in Mexico, France, and India, with sales of $262m.
“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 Berry Plastics. “The US 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.”
Source: Berry Plastics Group
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