Spokesman Jonathan Thornton told PrintWeek that the company felt it was not big enough in flexibles. Amcor is bigger in this area and the business will have a better home there.
The deal would give Amcor which last week posted a 35% rise in profits before exceptionals to 160m a 15% market share, making it the worlds top supplier of flexible packaging to the health-care industry.
However, Rexam chief executive Rolf Brjesson said the company remained committed to the healthcare and pharmaceutical segments, following its recent acquisition of Risdon Pharma. The healthcare flexibles business is our only business in flexible packaging. It has found a more appropriate home in a group specifically focused on this industry.
In 2002, the healthcare business had operating profits of 11m on sales of 163m, with net operating assets of 73m as of 31 December 2002.
The business, which specialises in products like foil films on blister packs of tablets, employs over 1,000 people and has 10 factories worldwide, including one in Bristol and one in Sligo, Ireland.
Amcor was unavailable for comment as PrintWeek went to press. Rexams shares closed down 4p to 420p after the announcement on 21 August, and dipped a further 2p the
next day.
Story by Rachel Barnes
