Rexam sells UK glass business

Rexam, the global consumer packaging group, informed 23 May 2005 that it has sold its glass business in Barnsley, UK, to Ardagh Glass for a cash consideration of GBP 50 million. The proceeds will be u…

Rexam, the global consumer packaging group, informed 23 May 2005 that it has sold its glass business in Barnsley, UK, to Ardagh Glass for a cash consideration of GBP 50 million. The proceeds will be used to pay down borrowings. In 2004, the Barnsley business, which employs 700 people, had an operating profit of GBP 3 million on sales of GBP 101 million. As at 31 December 2004, it had net operating assets of GBP 59 million. Commenting on the sale, Lars Emilson, Chief Executive, said: “The UK glass market is facing a difficult outlook and new capacity coming on stream will only exacerbate the situation. After reviewing our options, we felt that, as the number three player in the UK glass industry, divestment in this case was the best course of action. Rexam remains firmly committed to its glass customers and the glass container business. We continue to focus on further developing our glass business in northern continental Europe, where we have a solid market position, and in the fast growing markets of eastern Europe.