Rexam secures approval to sell personal care division

2 January 2013 (Last Updated January 2nd, 2013 18:30)

Rexam has received the Chinese authorities’ approval for the sale of its cosmetics, toiletries and household (CTH) care products business to an affiliate of Sun European Partners for $459m.

Rexam_Pump for glass fragrance bottles

Rexam has received the Chinese authorities' approval for the sale of its Cosmetics, Toiletries and Household (CTH) care products business to an affiliate of Sun European Partners for $459m.

The latest sale, together with the sale of the company's high barrier food container business (HBF), announced on 31 August 2012, finalises the sale of its personal care business for a total of $709m (£439m) subject to adjustments.

The global consumer packaging company has completed the sale of its HBF business to a subsidiary of Silgan for $250m.

Rexam announced its intention to return around £370m to shareholders in July 2012 following completion of the disposal of the personal care business.

According to the UK-based company, its personal care business reported sales of £502m and an underlying operating profit of £38m before central overheads for the year 2011.

The sale of CTH is expected to result in an impairment charge of around £200m at the half year, which will be almost made up in the second half by a gain on the sale of HBF.

About £7m of annual retained fixed costs will be absorbed by the company's beverage cans and healthcare businesses going forward.

As a result of the divestment, Rexam will carry out a restructuring programme to remove residual overheads, which will give rise to a charge of about £40m in 2012, together with certain separation costs.


Image: Rexam to sell cosmetics, toiletries and household care products business (CTH) to an affiliate of Sun Capital for $459m. Photo: Rexam