Berry Plastics Group Inc. recently announced that it has entered into a definitive agreement to acquire the U.S., Mexico, and India portions of Rexam’s Healthcare Containers and Closures (C&C) business. In addition, Berry Plastics has made a binding offer to purchase the French portion of Rexam’s C&C business, which Rexam may accept after completion of the required consultation process with the works council in France. Upon completion of both transactions, Berry Plastics would pay approximately $135 million for the entire Healthcare Containers and Closures business unit, with the closing expected to take place in the second calendar quarter of 2014.
The Healthcare Containers and Closures business produces bottles, closures and specialty products for pharmaceutical and over-the-counter applications. The transaction includes eight manufacturing locations: five in the U.S. and one each in Mexico, France, and India, with total employment of approximately 1,500 and 2013 sales of $262 million.
“The proposed acquisition of the Rexam Healthcare Containers and Closures business is directly aligned with our fundamental strategic initiatives,” said Jon Rich, chairman and CEO, Berry Plastics. “The U.S. portion of the business has a highly synergistic fit with our current healthcare product portfolio, while the facilities located outside the U.S. will allow us to increase our presence in the attractive global healthcare market segment.”
For more information, visit www.berryplastics.com.