Rexam has completed the previously announced sale of its High Barrier food container business to a subsidiary of Silgan Holdings for $250m.
The deal, which was originally announced in July 2012, gives Rexam a 90% concentration on the beverage can sector.
According to Silgan, the purchase price is expected to be neutral to its 2012 earnings primarily due to the initial write-up of inventory required for accounting purposes, and modestly accretive to earnings in 2013 based on current growth expectations.
Silgan president and CEO Tony Allott said as a global supplier of shelf-stable food packaging through its metal food can and vacuum closure businesses, the company can broaden its offerings to the growing market with the acquisition.
"This business is uniquely positioned for the growing demand in the ready-meals market through its low cost technology which meets the rigorous requirements of the shelf-stable food market," Allott added.
Rexam's High Barrier food container business, which has anticipated sales of about $100m in 2012, provides thermoformed packaging solutions, such as retortable bowls and barrier trays to many packaged food and ready-meal companies.
The transaction was part of a $709m total sell off by the global consumer packaging group, including the sale of its personal care division.
Silgan has annual net sales of about $3.5bn in 2011, and operates 80 manufacturing facilities in North and South America, Europe and Asia.
The company supplies rigid packaging for consumer goods products and metal containers in North America and Europe.
Image: Rexam's High Barrier food container division provides thermoformed packaging solutions such as retortable bowls and barrier trays. Photo: Rexam