Rexam in advanced talks with Montagu over packaging unit -sources
FRANKFURT Jan 9 (Reuters) - Montagu Private Equity has entered advanced talks with Rexam to buy the British beverage can maker's healthcare packaging unit, two people familiar with the transaction told Reuters.
The deal, which is expected to value Rexam Healthcare at about 500 million pounds ($823.18 million) will likely be announced later this month, one of the sources said on Thursday.
Rexam and Montagu declined to comment.
Rexam said in June that it would sell its healthcare business, which makes medical packaging and drug delivery devices such as bronchial inhalers and injection syringes and accounts for about 10 percent of group sales.
It is selling the healthcare unit to focus on its core business of making beverage cans.
Initially several other peers and private equity firms had put in bids.
But Germany-based Gerresheimer said early December that it is not interested in buying the asset.
Contender Berry Plastics and other buyout groups also dropped out of the race as their bids came in too low, the source said.
A successful sale of the healthcare division would follow that of Rexam's underperforming personal care business in July last year, which makes packaging for cosmetics and toiletries, for $709 million in two parts.
Private equity firm Sun Capital Partners agreed to buy the cosmetics, toiletries and household care division for $459 million, while Silgan Holdings acquired the high-barrier food packaging business for $250 million.