Rexam  mergers & acquisitions 
Global consumer packaging group Rexam, will acquire FangXin Limited’s beauty packaging business (FangXin) based in China for a cash consideration of US$74m, including borrowings assumed. The acquisition, which is expected to be earnings enhancing from the outset, is expected to be completed in the first quarter of 2006.

Rexam’s chief executive Lars Emilson, says this is a further step in the execution of the company’s strategy to expand in plastic packaging.

“The Chinese beauty packaging industry is becoming increasingly important globally,” says Emilson. “The acquisition of this well invested company broadens our product range and provides us with new capabilities that will further improve our customer offering."

FangXin manufactures lipstick cases, compacts and pumps as well as mascara cases. In the last four years, its sales have grown at a compound growth rate of about 30 per cent per annum.

Since 2003, FangXin has invested heavily in new facilities and has the capacity to further increase sales. In 2005, it is estimated that FangXin broke even on sales of US$33m and, at year end, had net operating assets of US$69m.

Rexam has had a presence in China since 1998, where, following the acquisition, it will have nine plastic packaging plants serving the beauty industry and one beverage can plant.