Monday June 11, 10:59 AM
British drinks can maker Rexam buys O-I Plastics
LONDON (AFP) - British company Rexam (LSE: REX.L - news) , the world's biggest maker of beverage cans, said Monday it had agreed to buy US group O-I Plastics for 1.825 billion dollars in cash.
Rexam, which produces more than 50 billion cans per year, said it would buy plastic healthcare packager O-I Plastics from parent company Owen-Illinois Incorporated in a deal worth 1.369 billion euros.
"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 Rexam chief executive Leslie Van de Walle.
The purchase was expected to reap cost and revenue synergies of about 40 million dollars per year by 2010, the statement added.
The deal, which was subject to regulatory and Rexam shareholder approvals, was due to be completed in the third quarter of 2007.
O-I Plastics, which is headquartered in Perrysburg, Ohio, chalked up sales of 760 million dollars in 2006 and underlying profit of 114 million dollars.
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