Rexam PLC, the global consumer packaging company, announced that it has agreed to sell its beverage and specialty closures business (Closures) toBerry Plasticsfor $360m in cash, subject to certain asset adjustments. Completion is expected in the 3rd quarter of 2011 and is conditional on regulatory approvals.
The Closures business employs about 1,500 people and is focused on the North American market. In 2010, the business was reported as discontinued with sales of £343m ($548m) and underlying operating profit of £22m ($35m). As of December 31, 2010 it had gross assets of £280m ($448m) and liabilities of £50m ($78m).
Rexam had bought the business from Owens-Illinois in 2007 as part of a larger transaction but had discontinued its operations in December. Rexam also announced that it would right-size its other plastics packaging businesses, leading to conjecture that more sales or plant closures could result.