Global drinks can manufacturer Rexam has completed the previously announced sale of its pharmaceutical devices and prescription retail packaging divisions to Montagu Private Equity for approximately $805m.
The two healthcare packaging divisions recorded sales of £250m in 2012 and employed around 1,500 people. They accounted for 85% of the company's total healthcare earnings before interest, taxes, depreciation, and amortisation (EBITDA), and had gross assets of £538m as of 31 December 2012.
Following completion of the transaction, the company plans to return approximately £450m to shareholders by way of a redeemable B and C share scheme together with a share consolidation.
Rexam chief executive Graham Chipcha said that the pharmaceutical devices and prescription retailpPackaging divisions represent the majority of the value of the company's healthcare business.
"Following the sale of healthcare, we will be a focused beverage cans business with a strong financial position," Chipcha added.
"Our strategy is to balance growth and returns, and we will continue to pursue selective investment opportunities in beverage cans in higher growth markets."
The company also secured a binding offer of $135m from Berry Plastics in March to acquire its containers and closures division, the remainder of its healthcare business.
Image: Rexam has divested its pharmaceutical devices and prescription retail packaging divisions for $805m. Photo: courtesy of Rexam PLC.