Rexam will sell the closures division to Berry Plastics for US$360m

Rexam will sell the closures division to Berry Plastics for US$360m

Rexam has agreed to sell its speciality closures business in a bid to reduce debt.

The UK-based drinks packaging giant will sell the division to US manufacturer Berry Plastics for US$360m in cash, it said today (20 June). Berry is majority-owned by US private equity firm Apollo. The sale is expected to complete in Rexam's third-quarter and is conditional on regulatory approvals.

Rexam said the business, which makes lids for drink and food containers for the North American market, reported a pretax loss of GBP177m ($288m) last year. It employs around 1,500 people.

The firm said that it plans to reduce its plastic packaging operations following the sale. Net proceeds will be used to reduce debt, it said.