Three rivals compete to buy Rexam packaging unit
Three packaging companies declared their intention to purchase the healthcare packaging unit of Rexam, according to unnamed sources familiar with the matter. The companies competing for the bid include US firms Silgan Holding Inc and Berry Plastics Group as well as German company Gerresheimer. This was according to a report published by Reuters.
The packing company also received a second round of bids this week. Rexam received offers from private equity firms KKR & Co LP and Bain Capital LLC, the report said.
Rexam's healthcare business manufactures medical packaging and drug delivery devices. Its products include injection syringe and bronchial inhalers. This unit accounts for 10% of its group sales. Rexam is selling its healthcare unit to focus more on its beverage can manufacturing business, the report explained.
The healthcare unit was priced at less than USD1 billion. The company expects to close a deal by the end of 2013 or early 2014, Reuters reported.