Global consumer packaging company Rexam has acquired plastics packaging company Precise Technology
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The world’s leading beverage can maker this week confirmed it will acquire all the shares in Precise Technology Inc, a US-based manufacturer of plastic packaging, from the private equity group Code Hennessy & Simmons LLC.Rexam chief executive Lars Emilson says it will be earnings enhancing from the outset and is expected to meet Rexam’s cost of capital from 2007.
"This is a very exciting acquisition and is a further step in our strategy to expand in plastic packaging,” he says. “Precise Technology provides an excellent entry for Rexam into the growing North American pharmaceutical and healthcare packaging market and will also extend our capability for existing customers in this sector whom we have been supplying mainly in Europe up until now.
“The company’s proprietary technology in dispensing closures complements our existing closures business, while its personal care and consumer products business gives us the opportunity to strengthen our overall packaging offering. In addition to the new sales opportunities expected from broadening our customer relationships, we expect further synergies in materials purchasing and from in-house tooling manufacture."
Precise Technology, which employs approximately 1,700 people, serves the healthcare, personal care, and food and beverage markets providing a wide variety of injection-moulded plastic packaging solutions, mostly on a customised basis. These include pharmaceutical and medical components and devices, dispensing closures, containers and other consumer packaging.
Its customers, many of whom are already served by Rexam, include household names in healthcare and personal care as well as leading global beverage brands.
Headquartered in Pittsburgh, US, Precise Technology currently comprises 15 plants in the US, including two tool manufacturing facilities, a plant in the Netherlands and one in the final stages of construction in Poland.
The acquisition is subject to certain conditions and regulatory authority approvals and it is anticipated that it will complete before the end of 2005.
