Montagu, Rexam in advanced talks over sale of healthcare packaging unit
London-based private equity firm Montagu Private Equity LLP has entered advanced talks with Rexam PLC to buy its healthcare packaging unit, sources told Reuters. Britain's Rexam is the leading global beverage can makera according to its website..
According to the report, one of the sources said on Thursday that the deal will likely be announced later this month. The buyout is expected to value Rexam's healthcare division at about £500 million ($823.18 million).
Rexam said in June that it would sell its healthcare business for about 10% of group sales. Its healthcare division makes medical packaging and drug delivery devices such as bronchial inhalers and injection syringes and accounts for about 10% of group sales, Reuters said.
Rexam is selling the healthcare packaging unit to focus on its core business of making beverage cans. Initially, several other peers and private equity firms had put in bids, the report said.
But German packaging company 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 Reuters source said.