Rexam has agreed to acquire the plastic packaging unit of Owens-Illinois for approximately $1.83 billion. The division manufacturers health care packaging and plastic tops, including tamper-proof closures. According to Rexam, the division reported a profit of $114 million on sales of $760 million in 2006.
“The acquisition of O-I Plastics will transform our plastic packaging business and is consistent with our strategy to expand our positions in growth markets,” said Leslie Van de Walle, CEO, Rexam.
Further, the company stated that the acquisition is an excellent fit in terms of its customers, technologies, innovation, end use applications and geography to offer significant value creation opportunities through cost and revenue synergies.
Van de Walle said the company expects the benefits will amount to approximately $40 million annually by 2010.