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Rexam adds Precise to plastics portfolioRexam adds Precise to plastics portfolio

November 17, 2005

1 Min Read
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Rexam, the global consumer packaging company and the world''s leading beverage can maker, has acquired top-line injection molder Precise Technology Inc. (North Versailles, PA) from the private equity group Code Hennessy & Simmons LLC for a cash consideration of $257.5 million including debt to be repaid.

Rexam anticipates closing the acquisition by year''s end. Precise employs approximately 1700 people at 12 U.S. sites and molds for customers in the healthcare, personal care, and food and beverage markets. It also has a molding facility in the Netherlands and soon opens one in Lodz, Poland. Sales in FY2004 were $294 million with EBITDA of $21.7 million.

Rexam says the two firms share some customers already. In a statement Lars Emilson, Rexam''s CEO, cited Precise''s strong North American position, proprietary technology in dispensing closures, and expected synergies in materials purchasing among reasons for the purchase.

In 2003 Rexam began to shift its plastics processing business away from commodities products towards value-added ones. As part of the shift it sold its flexible packaging operations and, in 2004, acquired French processor Plastic Omnium''s medical molding business.

Rexam''s plastics processing business includes sites around the world for its beauty packaging operations; it claims leading global positions in spray samplers, lipstick cases, fragrance closures, compacts, and fine-mist pumps. It has four European sites serving the medical industry and claims leading positions in drug powder-inhalers, eyedroppers, and pharmaceutical pumps. It also has three European sites for blow molded beverage refillable PET and PEN packaging, sites for thermoforming food packaging (especially dairy goods), and three closure molding sites in the U.S.-Matt Defosse; [email protected]

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