Rexam to buy Precise Technology for $258 mln
The deal fits well with Rexam’s plans to expand its plastic packaging business worldwide.
16/11/05 British drinks can maker Rexam has said that it had agreed to buy U.S.-based packaging group Precise Technology for $257.5 million.
Rexam said the deal with Precise Technology's private-equity owner, Code Hennessy & Simmons, was due to close by the end of the year and would be earnings enhancing from the outset.
Rexam, the world's biggest drinks can maker, said the purchase fits well with its plans to expand its plastic packaging business worldwide.
The company said Precise Technology produced earnings before interest, tax and amortization (EBITA) of $21.7 million on sales of $294 million in its last financial year.
Shares in Rexam rushed to an all-time high last week as talk of a bid for the British group swirled through the market.
The firm which makes cans for energy-drink Red Bull said in August that it planned to use its strong cashflow for more bolt-on acquisitions.
