Berry Plastics To Buy Rexam's Healthcare Containers & Closures Business

(RTTNews) - Berry Plastics Group, Inc. (BERY) has agreed to acquire the U.S., Mexico, and India portions of Rexam's Healthcare Containers and Closures or C&C business. Also, Berry Plastics has made a binding offer to buy the French portion of Rexam's C&C business, which Rexam may accept after completion of the required consultation process with the works council in France.

After the closing of both transactions, Berry Plastics would pay nearly $135 million for the entire Healthcare Containers and Closures business unit, with the closing likely to occur in the second calendar quarter of 2014. The acquisition, which would be funded from existing liquidity, is expected to be deleveraging after achieving synergies.

The Healthcare Containers and Closures business produces bottles, closures and specialty products for pharmaceutical and over-the-counter or OTC applications. The transaction comprises 8 manufacturing locations, 5 in the U.S. and one each in Mexico, France, and India, with total employment of about 1,500 and 2013 sales of $262 million.