Taking on the UK-based firm’s perfume pump business (Rexam Personal care also produces cosmetic packaging such as lipstick, and mascaras) will open Albéa, who currently serve the personal care, skin care and colour cosmetics segment, up to the lucrative fragrance market and will help the French firm span all areas of the cosmetics packaging industry.
“This acquisition would appear as a major opportunity for Albéa to increase its market share, enlarge our portfolio and expand our global footprint,” a company spokesperson told CosmeticsDesign-Europe.com.
A bold new step
The combined businesses will build on both companies’ market position and create a leading packaging group with a global platform.
“The new platform would give significant opportunities to deliver extended customer solutions. Customers would benefit from the complementary market knowledge, the innovation capabilities and the technical know-how,” says Albéa.
The deal is expected to be completed by the end of the year, following the completion of the regulatory processes.
Sun Capital Partners, the investment firm behind the bid, are understood to have made a binding offer for the Rexam Personal Care division for a total of $462 million (€356m) subject to consultation with various European works councils.
The transaction is subject to certain adjustments and regulatory approvals on completion and is expected to be completed in Q4 2012. Rexam Personal Care would then become part of Albéa.
The European Commission has cleared the proposed acquisition concluding that the transaction would not significantly impede effective competition in the European Economic Area (EEA)
On the market
Rexam announced it was ‘actively marketing’ its Personal Care business for sale following the release of the company’s 2011 results, in February this year.
The company stated it was cautious about the global economy and turned its focus to cash, costs and return on capital employed; some of the reasons driving the decision to sell the personal care business.
In total, Rexam’s personal care business employs some 7,000 people in Europe, the US and Asia. In 2011, the business had sales of $773m (€625m).
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