UPDATE 1-Rexam to sell personal care business for $709 mln
* Division sold in two parts to Sun Capital Partners and Silgan Holdings
* Will return about $580 mln to shareholders
* Rexam shares up 1.8 pct
LONDON, July 3 (Reuters) - British drinks can maker Rexam said on Tuesday it had agreed to sell its underperforming personal care business in two parts for $709 million in cash and return about $580.5 million of the proceeds to investors.
Private equity firm Sun Capital Partners had agreed to buy the cosmetics, toiletries and household care division for $459 million, Rexam said, while Silgan Holdings would acquire its high-barrier food packaging business for $250 million.
Rexam put the businesses, which employ 7,000 people, on the block in February because they had been hit by rising costs and lower volumes.
The company said it would restructure as a result of the sale at an exceptional cost of 40 million pounds, of which 25 million would be cash costs.
Shares in Rexam were 1.8 percent higher at 431 pence by 1240 GMT, outperforming a 0.3 percent firmer FTSE 100 index.