Rexam healthcare packaging unit attracts private equity

Alice Murray
13 August 2013

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Packaging giant Rexam has initiated a sale process for its healthcare packaging division, which could fetch around £650m.

The beverage can manufacturer announced plans to offload the healthcare division in June in an update to shareholders on its half-year trading activity. The sale is part of the firm's strategy of focusing on its core beverage cans business.

Indeed, in July 2012 Sun Capital Partners picked up Rexam's personal care packaging division for $459m.

According to Reuters the sale is gathering pace and first-round bids are believed to be due by the end of September.

It is understood that Cinven, BC Partners, Bain Capital, Carlyle, Permira and One Equity Partners have expressed interest in the carve-out. The £650m price tag would equate to a 8x EBITDA multiple.

The healthcare business provides drug delivery systems, containers and closures as well as prescription retail packages for the pharmaceutical and healthcare markets. It supplies more than one billion customised and standard products globally each year.

The division employs in excess of 3,000 staff across 14 factories globally.