Rexam raises GBP108.5 million to help fund US purchase

The packaging group Rexam yesterday tapped the City for GBP 108.5 million to help fund its GBP 75 million purchase of a US beauty pumps business from Crown Cork & Seal.
The deal catapulted the compan…

The packaging group Rexam yesterday tapped the City for GBP 108.5 million to help fund its GBP 75 million purchase of a US beauty pumps business from Crown Cork & Seal. The deal catapulted the company into the American market for perfume dispensers, where it will make atomiser sprays for companies such as L“Oreal and Estee Lauder, and continued its strategy of expanding its US consumer packaging operations. Rexam“s brokers, Hoare Govett, placed 31 million new shares, or 7.8% of its share capital, at 350p a share, raising GBP 108.5 million. The company“s shares fell 6% to 351.25p. Rolf Borjesson, the chief executive, said the beauty pumps business was “an excellent geographic fit with its existing businesses … [bringing] good technical skills and a complementary customer base”. The acquisition is expected to provide substantial revenue synergies with Rexam“s France-based beauty pumps operation and earnings enhancing, before goodwill amortization, in 2002. The Connecticut-based Beauty Pumps made profits before interest, tax and amortization of GBP 10 million on sales of GBP 38 million last year. The balance of the funds raised yesterday will be used to reduce debt.