Rexam Sells UK Glass Business

Rexam has announced that it has sold its glass business in Barnsley, UK, to Ardagh Glass for a cash consideration of £50m. The proceeds will be used to pay down borrowings.

In 2004, the Barnsley business , which employs 700 people, had an operating profit of £3m on sales of £101m. As at 31 December 2004, it had net operating assets of £59m.

Commenting on the sale, Lars Emilson, Chief Executive, said: “The UK glassmarket 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 glasscontainer 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.”

http://www.rexam.com