Rexam, the world's largest can maker, has bought the plastic packaging business of Owens-Illinois in the US for $1.83bn.
The company wants to tap into the rapidly growing market for packaging medicines. The US market, currently worth $4bn (£2.03bn), is growing by 7% a year as the population ages and people become more health-conscious.
The acquisition will make Rexam the leading plastic packaging manufacturer in the American healthcare market. It also catapults the British company into the number one spot in the US for plastic closures, which are used for fizzy drinks, water and food.
Chief executive Leslie Van de Walle said: "The acquisition of O-I Plastics will transform our plastic packaging business and is consistent with our strategy to expand our positions in growth markets."
More than 90% of O-I Plastics' sales and profits are generated in the US.
Rexam shares dropped by more than 3% to 495p this morning. The company plans to fund the deal with the placing of 58.35m new shares, equivalent to 10% of its existing share capital, as well as a bond issue and the proceeds of the recent sale of its glass business.
Nick Spoliar at Bridgewell described the deal as a "bold move for Rexam and shows their ambitions to be a global player in rigid plastics as they are in cans".
source : http://business.guardian.co.uk
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