Rexam Sells UK Glass Business
June 1, 2005
Rexam recently announced that it has sold its glass business in Barnsley, UK, to Ardagh Glass for a cash consideration of GBP 50m. The proceeds will be used to pay down borrowings. In 2004, the Barnsley business, which employs 700 people, had an operating profit of GBP 3m on sales of GBP 101m. As of December 31, 2004, it had net operating assets of GBP 59m. "The UK glass market is facing a difficult outlook, and new capacity coming on stream will only exacerbate the situation," said Lars Emilson, chief executive of Rexam. "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."
For more information, visit http://www.rexam.com.