Acquisition
28 January 2004 - 8:00PM
UK Regulatory
RNS Number:7155U
Rexam PLC
28 January 2004
Rexam to acquire Heineken's Dutch glassworks
Rexam PLC, the global consumer packaging company, is pleased to announce that it
has signed a binding Letter of Intent with global brewer Heineken NV to acquire
all the shares in its wholly owned subsidiary Glas Moerdijk BV in the
Netherlands for Euro43 million including borrowings in the acquired company. The
acquisition is supported by a supply agreement with Heineken.
The sales price represents a multiple, based on 2003 results, of 4.9 times
EBITDA. The business is expected to exceed cost of capital in 2004.
Pursuant to Dutch labour laws, the parties will be consulting with the works
councils at Glas Moerdijk and at Rexam's existing Dutch glass plant in Dongen
prior to completing the transaction.
The acquisition of Moerdijk will strengthen Rexam's position as a key supplier
to Heineken, which is also a major customer of Rexam's beverage can operations.
Additionally, the acquisition will offer further opportunities for performance
enhancement through access to Rexam's manufacturing know-how and by economies of
scale in areas such as purchasing and logistics.
Commenting on the announcement, Rolf Borjesson, Rexam's Chief Executive, said:
"The acquisition of Moerdijk will strengthen Rexam's position in glass in
Northern Europe, create opportunities for operational improvement and reinforce
our long term relationship with Heineken, one of Rexam's main beverage
customers."
28 January 2004
Enquiries
Graham Chipchase, Finance Director +44 (0)20 7227 4100
Per Erlandsson, Director Corporate Communications
Financial Dynamics
Richard Mountain +44 (0)20 7269 7291
Notes to Editors
Rexam is one of the world's top five consumer packaging groups and the world's
leading beverage can maker. Its global operations focus on beverage packaging in
metal, glass and plastic, as well as plastic packaging solutions for the beauty,
pharmaceutical and food industries around the world. The Rexam Group employs
more than 22,000 people in 24 countries worldwide and has an ongoing turnover of
approximately #3.3 billion. Rexam is a member of the FTSE 100. Its ordinary
shares are listed with the UK Listing Authority and trade on the market for
listed securities on the London Stock Exchange under the symbol REX. For further
information, visit Rexam's website at www.rexam.com
This information is provided by RNS
The company news service from the London Stock Exchange
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