FRANKFURT Jan 9 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
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.