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Rexam to acquire Heinekens Dutch glassworks
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 Rexam PLC announces that it has signed a binding Letter of Intent with global brewer Heineken NV to acquire all the shares in its wholly owned subsidiary Glas Moerdijk BV in the Netherlands for 43M including borrowings in the acquired company.
The acquisition is supported by a supply agreement with Heineken.
The sales price represents a multiple, based on 2003 results, of 4.9 times EBITDA. The business is expected to exceed cost of capital in 2004.
Pursuant to Dutch labour laws, the parties will be consulting with the works councils at Glas Moerdijk and at Rexams existing Dutch glass plant in Dongen prior to completing the transaction.
The acquisition of Moerdijk will strengthen Rexams position as a key supplier to Heineken, which is also a major customer of Rexams beverage can operations. Additionally, the acquisition will offer further opportunities for performance enhancement through access to Rexams manufacturing know-how and by economies of scale in areas such as purchasing and logistics.
Commenting on the announcement, Rolf Börjesson, Rexams Chief Executive, said: The acquisition of Moerdijk will strengthen Rexams position in glass in Northern Europe, create opportunities for operational improvement and reinforce our long term relationship with Heineken, one of Rexams main beverage customers.
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January 29th, 2004
Photo: Rexam
Source: Rexam |
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