Feb 13 Beverage cans maker Rexam Plc
said it bought a 51 percent stake in Saudi Arabia's United Arab
Can Manufacturing Ltd, a supplier to The Coca-Cola Co,
for $122 million as part of its strategy to expand in emerging
Rexam, which makes cans for Coca-Cola, PepsiCo Inc
and Heineken, said UAC's plant in Dammam, Saudi
Arabia, has an annual capacity of 1.8 billion cans.
UAC had earnings before interest, taxes, depreciation and
amortization of about $29 million in 2012, London-based Rexam
"Growth prospects for the beverage can in the Middle East
are attractive," Rexam Chief Executive Graham Chipchase said in
The deal is expected to close in the third quarter of 2014.
Rexam, which set up an office in Dubai last year to focus on
Africa, the Middle East and Asia, said in November that it
expected emerging markets such as Brazil and India to perform
well in 2014.
UAC's shareholders include Olayan Financing Company, Aujan
Industries Co LLC, The Coca-Cola Bottling Company of Saudi
Arabia and Al-Jabr Trading Company.
Rexam recently sold the bulk of its healthcare packaging
business to Montagu Private Equity for $805 million in cash to
focus on making beverage cans.
Rexam is due to report its full-year results on Feb. 20.
Shares in the company were up marginally at 511 pence at
1510 GMT on the London Stock Exchange on Thursday.