(Clarifies deal is for the bulk of the business, remainder sold
FRANKFURT Jan 9 Montagu Private Equity has
entered advanced talks with Rexam to buy the bulk of the
British beverage can maker's healthcare packaging unit, three
people familiar with the transaction told Reuters.
The deal is likely to be announced this month, one of the
sources said, with the part of the business that makes
prescription retail products and devices expected to be valued
at about 500 million pounds ($823 million).
The small remaining part of the division - supplying
containers and closures - is being sold off separately, another
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.
($1 = 0.6072 British pounds)
(Reporting by Arno Schuetze and Anjulie Davies; Editing by
Elaine Hardcastle and David Goodman)